Fitch affirms Pakistan rating as positive signal for economy

Karachi (Web Desk): Global credit rating agency Fitch has expressed confidence in Pakistan’s economic policies, upgrading the country’s outlook to “stable.”

According to the report, Pakistan’s fiscal discipline and overall economic performance have remained satisfactory.

Fitch noted that ongoing cooperation with the International Monetary Fund (IMF) has supported the economy, with Pakistan expected to receive a $1.2 billion tranche following final board approval.

The agency projected Pakistan’s GDP growth at around 3.1% for the upcoming fiscal year, while average inflation is expected to remain near 7.9%.

The current account deficit is also forecast to stay limited at around 1.1% of GDP. It added that a reduction in policy rates has improved investor and business confidence.

However, the report highlighted that Pakistan faces external repayment obligations of approximately $12.8 billion in the coming period. Despite this, Fitch expects foreign exchange reserves to remain broadly stable, even amid repayment pressures.