Fitch has upgraded Pakistan’s rating to Triple C Plus

Credit rating agency Fitch has upgraded Pakistan’s credit rating after almost 7 months.

Fitch upgraded Pakistan’s long-term foreign currency rating from Triple C to Triple C Plus. According to Fitch’s report, due to the IMF agreement, Pakistan’s access to external funding has improved and the country’s economic situation has also improved, which has led to the rating upgrade.

New monetary policy, State Bank announced one percent reduction in interest rate

Fitch said in its report that Pakistan has performed well under the Standby Arrangement Agreement. According to the report, before the meeting of the IMF Executive Board, Pakistan will have to roll over the debt of mutual agreements with China, Saudi Arabia, United Arab Emirates.

Fitch has said that Pakistan has taken policy measures in the recent federal budget to improve the economy. However, Pakistan needs another 3 percent increase in tax-to-GDP ratio.

Fitch has forecast that the current account deficit (CAD) will remain relatively flat at $4 billion (about 1 percent of GDP) in the next fiscal year 2025, after about $700 million in the current fiscal year.

Jails of Punjab have become hotbeds of corruption

It should be noted that by upgrading Fitch’s credit rating, global institutions will restore Pakistan’s confidence.