ISLAMABAD – International credit rating agency Fitch has affirmedPakistan’s sovereign credit rating at B- with a Stable Outlook.
In a press release issued on Monday, the agency took note of the improvedexternal resilience due to the policy actions taken by the government.
Going forward, Fitch forecast further narrowing of the current accountdeficit to 2.1 percent of GDP in FY20 and 1.9 percent in FY21, from 4.9percent in the last fiscal year. The Rating Agency has also appreciated theadoption of a flexible exchange rate by the State Bank of Pakistan.
According to Fitch, with the reform agenda on track as evident from thesuccessful review of the arrangement with the IMF, the government isconsolidating public finances though stronger revenue growth, broadening oftax base and increased documentation of the economy.
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Fitch has also acknowledged improved fiscal discipline, ensured by therecently introduced Public Financial Management Act and the steps taken bythe government to manage domestic debt risks following cessation ofborrowing from the State Bank.
