Fitch Upgrades Pakistan Credit Rating on Better External Funding
Hindustan TimesFitch Ratings raised Pakistan’s credit rating, citing reduced risks from external funding after it secured a new bailout from the International Monetary Fund. Fitch upgraded Pakistan to CCC+ from CCC, suggesting while the nation remains below investment grade, there is a lower chance of a default now. The previous IMF bailout “helped the country narrow fiscal deficits and rebuild foreign exchange reserves, and further improvements are likely.” Pakistan is expecting final approval from the IMF for a new $7 billion loan deal by August-end. Support from creditor nations including China, Saudia Arabia, and the UAE has also helped in managing the nation’s foreign debt obligations as its coalition government implements tough reforms such as widening the tax net and cutting spending on energy subsidies.
History of this topic
Fitch upgrades Pak’s rating ahead of IMF board meet on $3 billion agreement
Live Mint
Fitch downgrades Pakistan's rating; warns default a 'real possibility'
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