FX.co ★ Fitch Lifts Pakistan Credit Rating to 'B-'

On April 15, 2025, Fitch Ratings elevated Pakistan's Long-Term Foreign-Currency Issuer Default Rating from 'CCC+' to 'B-', with a stable outlook. This upgrade reflects the country's advancements in fiscal consolidation, stabilization of the external account, and enhanced macroeconomic policy management. The agency has underscored increased confidence in Pakistan's capability to sustain progress under the reform program supported by the International Monetary Fund (IMF), which includes initiatives to decrease the fiscal deficit and enhance policy discipline. The reduction in global oil prices has also alleviated some pressure on Pakistan's external account. Fitch anticipates that stringent economic policies will aid in the recovery of reserves and the management of significant external financing requirements. Although global trade tensions present potential risks, Pakistan benefits from its minor dependency on exports and external market financing, providing a degree of shielding. Currently, Standard & Poor's assigns Pakistan a credit rating of CCC+ with a stable outlook, while Moody's last rated Pakistan at Caa2, maintaining a positive outlook.