Karachi: Global credit rating agency Fitch has expressed confidence in Pakistan’s economic performance, maintaining a stable outlook for the country.
According to Fitch Ratings, Pakistan’s fiscal discipline and overall economic performance have remained satisfactory, while the country’s credit rating has been retained at B-.
The report stated that Pakistan’s economy has improved under the program of the International Monetary Fund, with the possibility of receiving a $1.2 billion tranche following approval by the fund’s board.
Fitch noted that despite external payment pressures, foreign exchange reserves are expected to remain stable. However, risks to the energy sector may persist due to the ongoing tensions in the Middle East.
The report projected that inflation could rise to 7.9 percent in the next fiscal year, while a reduction in the policy rate has boosted business confidence. Economic growth is expected to reach 3.1 percent.
Additionally, external payment pressures are likely to increase to $12.8 billion, while the current account deficit is expected to remain contained at around 1.1 percent.
