ISLAMABAD: International credit rating agency Fitch has upgraded Pakistan’s long-term foreign currency issuer default rating from ‘CCC+’ to ‘B-‘, while also revising the country’s economic outlook from “negative” to “stable”.
In a statement, Fitch said the upgrade reflects growing confidence in Pakistan’s commitment to economic reforms and its efforts to reduce the fiscal deficit. The agency noted improvements in the country’s adherence to the IMF programme and enhanced access to external financing.
Fitch expects Pakistan’s overall budget deficit to narrow to 6% of GDP by June 2025, down from approximately 7% in FY2024. In the medium term, the deficit is projected to stabilize around 5%.
The agency also affirmed Pakistan’s local currency rating at ‘B-‘, and highlighted that the outlooks by other major rating agencies, including Moody’s and S&P, remain stable — signaling signs of economic stabilization.
However, Fitch cautioned that Pakistan continues to face significant economic challenges, and emphasized the need for sustained progress on structural reforms to ensure long-term financial stability.
