Fitch ‘upgrades’ Pakistan's rating

Global rating agency Fitch has upgraded Pakistan's long-term foreign currency rating from Assured Default Rating.

According to the details, global rating agency Fitch has upgraded Pakistan's long-term foreign currency rating from Insure Default Rating (IDR) to Triple C Plus from Triple C.

Generally, global rating agencies do not assign an outlook to sovereigns rated Triple C Plus or below.

It is pertinent to note that on December 14, 2023, global rating agency Fitch maintained the long-term default rating of Pakistan's foreign currency at 'Triple C'.

Earlier, Fitch downgraded Pakistan's rating from Triple C Plus in October 2022 to Triple C Minus in February 2023, after which it raised it again to Triple C in July 2023.

It is pertinent to note that Federal Finance Minister Muhammad Aurangzeb briefed the International Rating Agency (Fitch) officials about the successful agreement with the International Monetary Fund (IMF) to stabiliee Pakistan's economy and macroeconomic indicators.

The federal minister briefed Fitch representatives on the salient features of the new program, which includes setting a target of increasing tax revenues to 1.5 percent of GDP in fiscal year 2025 and three percent in the next three years, fiscal year 2025. A primary surplus of one percent of GDP will also be achieved.