Global rating agency Fitch Ratings has maintained its confidence in Pakistan, keeping the country’s economic outlook stable.
According to the agency, Pakistan’s fiscal discipline and overall economic performance have remained satisfactory. The country’s credit rating has been retained at B-, with a stable outlook.
The report noted that Pakistan’s economic situation has improved under the International Monetary Fund program, and following board approval, the country is expected to receive a $1.2 billion tranche.
Fitch also stated that foreign exchange reserves are likely to remain stable despite external payments, although Pakistan faces energy-related risks due to tensions in the Middle East.
The report projected that inflation could rise to 7.9% in the next fiscal year, while a reduction in the policy rate has boosted business confidence. Pakistan’s GDP growth is forecast to reach 3.1%.
Additionally, external payment pressures are expected to increase to $12.8 billion, while the current account deficit is projected to remain contained at 1.1%.
