Fitch Ratings, one of the world’s most popular global credit rating agency, has affirmed Pakistan’s long term foreign currency rating B-with a stable outlook. The agency appreciated Pakistan for taking positive steps which showed improvement in the fiscal front and the strategies tailored to strengthen the external finance.
However, the New York-based agency also identified that ‘considerable risks remain’. It has also unveiled that external vulnerabilities have decreased as compared to last year as an outcome of policy actions involving the International Monetary Fund (IMF) program.
It also noted, ” Still, external finances remain fragile with relatively low foreign-exchange reserves in the context of an elevated external debt repayment schedule and subdued export performance.”
The IMF’s Extended Fund Facility is on track with the completion of the first review in December. More so, Fitch thinks that the government will always be challenged by the political scenario in the country which also gets in the way of policymaking.