Global rating agency Fitch has upgraded Pakistan’s long-term foreign currency rating from ‘Insure Default Rating’ (IDR) to ‘Triple C Plus’ from ‘Triple C’.
Typically, global rating agencies do not assign an outlook to sovereigns rated ‘Triple C Plus’ or below. It is noteworthy that on December 14, 2023, Fitch had maintained Pakistan’s long-term foreign currency rating at ‘Triple C’.
Previously, Fitch downgraded Pakistan’s rating from ‘Triple C Plus’ in October 2022 to ‘Triple C Minus’ in February 2023, and later upgraded it to ‘Triple C’ in July 2023.
Federal Finance Minister Muhammad Aurangzeb recently briefed Fitch officials on Pakistan’s successful agreement with the International Monetary Fund (IMF) aimed at stabilizing the economy and improving macroeconomic indicators. The minister highlighted key features of the new program, including a target to increase tax revenues to 1.5 percent of GDP in fiscal year 2025 and 3 percent in the subsequent three years, along with achieving a primary surplus of 1 percent of GDP in fiscal year 2025.
