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Fitch Upgrades Pakistan’s Foreign Currency Rating to ‘B-’ Amid IMF Support
Fitch upgrades Pakistan’s credit rating to ‘B-’, citing progress on budget deficits and IMF reforms. Confidence grows despite global trade tensions.
ND
by News Desk
2025-04-15
Fitch Upgrades Pakistan’s Foreign Currency Rating to ‘B-’ Amid IMF Support

Global ratings agency Fitch has upgraded Pakistan's foreign currency credit rating from ‘CCC+’ to ‘B-’, signaling a positive outlook for the country's economic recovery. The upgrade reflects increased confidence in Pakistan's efforts to narrow its budget deficits, along with expectations that the country will continue implementing vital structural reforms that align with its ongoing International Monetary Fund (IMF) programme.

Fitch highlighted that while global trade tensions may pose external risks, Pakistan's relatively low dependence on exports and market financing will help mitigate these pressures. This upgrade follows a period of economic uncertainty, during which Pakistan's inflation surged to record levels in May 2023, and its foreign exchange reserves dwindled. The situation had raised concerns of an impending default.

However, the situation has improved, thanks to a $7 billion bailout package from the IMF, which has provided some much-needed relief. In March, Pakistan reached a new deal with the IMF, potentially unlocking $1.3 billion in cash, which is seen as a critical step toward stabilizing the economy.

Despite challenges, including ongoing external pressures, the rating upgrade from Fitch suggests that Pakistan's fiscal discipline and structural reforms are gaining traction, fostering optimism among investors and global markets. This marks a significant turning point for the country as it continues to navigate its economic recovery.
Tagged:

IMF

PakistanEconomy

EconomicRecovery

CreditRating

FitchRating
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