Fitch Raises Pakistan’s Credit Rating Amid Improved Fiscal Outlook

Islamabad: In a significant financial update, Fitch Ratings has elevated Pakistan’s Long-Term Foreign-Currency Issuer Default Rating from ‘CCC’ to ‘CCC+’. This upgrade signals a modest improvement in the country’s creditworthiness, attributed to enhanced external funding prospects and recent fiscal achievements.

According to Ministry of Information and Broadcasting, the rating improvement is driven by increased certainty regarding the ongoing availability of external financial support, particularly in light of Pakistan’s recent agreement with the International Monetary Fund (IMF) on a new $7 billion Extended Fund Facility spanning 37 months.

This development comes as Pakistan demonstrates commendable progress under its prior, more provisional, financial arrangement with the IMF, which has been instrumental in reducing fiscal deficits and bolstering foreign exchange reserves. Further enhancements in fiscal performance are anticipated as the country continues to implement economic reforms under the new IMF program.

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