Skip to main content

Fitch Upgrades Pakistan to 'CCC+'

Fitch Ratings has upgraded Pakistan's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'.











  • Pakistan's upgrade reflects improved certainty over external funding, thanks to a new USD 7 billion Extended Fund Facility (EFF) agreement with the IMF and strong performance on a previous IMF arrangement.
  • The IMF agreement, reached on 12 July, requires Pakistan to secure additional funding from Saudi Arabia, the UAE, and China before IMF Board approval, expected by end-August.
  • The new EFF aims to address structural weaknesses in the tax system, energy sector, and state-owned enterprises, with significant increases in tax revenues planned.
  • Pakistan successfully completed a nine-month Stand-by Arrangement with the IMF, implementing significant fiscal and economic measures, including raising taxes and prices.
  • The current account deficit is expected to remain contained due to tight financing conditions, subdued demand, and lower commodity prices.
  • Pakistan faces over USD 22 billion in external public debt maturities in FY25, with identified funding mostly from bilateral and multilateral sources.
  • The State Bank of Pakistan is rebuilding foreign exchange reserves, which are expected to rise significantly by FY26.
  • The FY25 budget targets a primary surplus, with significant revenue efforts and expenditure controls.

    • See full reports

    Labels:

    Popular posts from this blog

    Brent Crude Logs Biggest Weekly Drop Since September on Weak Demand, Easing Tensions

    Oil prices were under pressure this week. Brent crude oil futures fell 1.9% to $73 per barrel on Friday, registering the biggest weekly loss since early September, with prices dropping over 7%. The decline was attributed to weaker demand forecasts from OPEC and the International Energy Agency (IEA), slowing economic growth in China, and signs of easing geopolitical tensions in the Middle East. Both OPEC and the IEA revised down their demand forecasts for 2024 and 2025. China's refinery output declined for the sixth consecutive month, impacted by weak fuel demand and the growing adoption of electric vehicles (EVs). Meanwhile, U.S. crude oil production reached a new record last week. Although a drawdown in U.S. crude inventories and stronger-than-expected retail sales in September provided some support to oil prices, easing concerns about a broader conflict in the Middle East exerted additional downward pressure on the market.
    Read more
     A Snapshot of Exchange Traded Funds at PSX
    Read more

    PSX Strongly Rebounds

    The Pakistan Stock Exchange (PSX) reacted positively to the conclusion of the IMF staff-level agreement and has now recovered a substantial part of the losses sustained on Monday. Today, out of the 1,139-point gain in the KSE-100 Index, around 800 points were contributed by UBL, OGDC, PPL, and Meezan Bank.
    Read more