Fitch grades Pakistan’s outlook to negative

Fitch Ratings has revised Pakistan’s outlook from stable to negative, while affirming its long-term foreign currency (LTFC) issuer default rating (IDR) at “’B-”, the leading provider of credit ratings said Tuesday. “The revision of the outlook to negative reflects significant deterioration in Pakistan’s external liquidity position and financing conditions since early 2022,” the rating provider said in a statement.

Fitch Ratings said that it assumes that the International Monetary Fund’s (IMF) Executive Board will approve Pakistan’s new staff-level agreement with the lender.

But it also said that it sees considerable risks to its implementation and continued access to financing after the programme’s expiry in June 2023 in a tough economic and political climate.