Fitch upgrades Pakistan’s credit rating from CCC+ to B-

(Web Desk): International credit rating agency Fitch has upgraded Pakistan’s credit rating, raising it from CCC+ to B-.

Fitch has also improved Pakistan’s economic outlook from negative to stable.

The agency upgraded Pakistan’s long-term foreign currency issuer default rating from CCC+ to B-, and also rated the country’s local currency rating at B-.

According to Fitch, this upgrade reflects growing confidence in Pakistan’s efforts to reduce its budget deficit and maintain the momentum of economic reforms.

Fitch stated that Pakistan has improved its implementation of the IMF program and has gained easier access to financing.

The agency expects Pakistan’s overall budget deficit to reduce to 6% by June, with a medium-term target of around 5%. In fiscal year 2024, the deficit was approximately 7%.

Fitch also noted that Pakistan’s outlook from Moody’s and S&P is stable, which indicates signs of stabilization in the country’s economy.

However, the agency emphasized that Pakistan still faces economic challenges, and maintaining the continuity of economic reforms is extremely important.