ISLAMABAD - Pakistan economic outlook has been downgraded by the Fitch Ratings.
As per media report, Fitch Ratings on Friday downgraded Pakistan’s rating to B- from B previously and maintained the outlook as stable for the foreseeable future.
According to the rating agency, the downgrade was indicative of a heightened external financing risk from low reserves and elevated external debt repayment.
Fitch projected GDP growth to fall to 4.2% in FY19, from a 13-year high of 5.8% in FY18, as monetary and fiscal tightening measures begin to weigh on activity.
It added the continuing deterioration in the fiscal position with a rising debt to GDP ratio also contributed to the downgrade to B- from B previously.