ISLAMABAD: Global credit rating agency Fitch Ratings on Wednesday reaffirmed Pakistan’s long-term foreign-currency credit rating at B-, signaling continued economic stability.
Fitch also assigned Pakistan a Recovery Rating of RR4, indicating average recovery for investors in the event of a default.
Previously, Pakistan had been placed in the “Under Criteria Observation” category, a temporary status used when agencies reassess ratings under revised rules. It has now been removed.
Improved financing conditions
The rating agency had upgraded Pakistan’s foreign-currency rating to B- with a stable outlook in April last year, reflecting improved external financing conditions and policy support under the International Monetary Fund program.
Fitch warned that Pakistan’s rating could come under pressure if fiscal reforms slow, debt levels rise, or external liquidity weakens, particularly due to delays in IMF program reviews.
It said the rating could improve if Pakistan achieves sustained reductions in government debt, strengthens tax collection, and builds foreign exchange reserves beyond current forecasts.
The decision was seen by market observers as a positive signal, as Pakistan retained its rating after a review under stricter criteria.
