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Fitch affirms Pakistan’s B- rating, calls outlook ‘stable’

Fitch affirms Pakistan’s B- rating, calls outlook ‘stable’

KARACHI: International agency Fitch says that Pakistan’s fiscal deficit is decreasing and the pace of growth is improving, the growth rate is expected to be 1.2 percent this financial year.

According to a report released by Fitch Ratings on Pakistan’s economy, the country’s current account deficit is expected to be 1.7% this fiscal year while remittances are expected to fall by 10% due to the global economic slowdown caused by coronavirus.

Fitch says Pakistan will repay USD 10.3 billion of external debt in fiscal year 2021 and in 2022, the country has to repay a further 8.9 billion.

Fitch says that due to coronavirus, Pakistan’s fiscal deficit will be 8.2% in FY2021. However, the pace of development in Pakistan is gradually improving. In the current financial year, the growth rate of Pakistan is expected to be 1.2% against negative 0.4% in the previous financial year.

Adviser to Prime Minister Imran Khan on Finance Abdul Hafeez Shaikh on Monday said that the Fitch, one of the top credit rating agencies in the world, has maintained the B-negative (B-) rating of the country with a stable economic outlook.

In a twitter message Hafeez Shaikh said “Fitch Ratings has maintained Pakistan’s sovereign rating at “B”  with a “Stable Outlook”, further confirming Moody’s assessment. This is a testament to the govt’s balanced & effective financial management to protect livelioods of citizens while also preventing COVID-19 spread”.