Global rating agency Fitch downgraded Pakistan’s rating to triple C.
In a statement released by Fitch, Pakistan’s long-term foreign currency debt rating has been downgraded.
According to Fitch, Pakistan’s long-term foreign currency debt rating has been upgraded to triple C.
Fitch says Pakistan’s foreign currency debt rating has been downgraded to Triple C from Triple C Plus.
According to Fitch, the downgrade is due to an alarming decline in foreign exchange reserves. We believe that the ninth review of the International Monetary Fund (IMF) program will be successful, default or debt restructuring is a real possibility, the completion of the ninth review is subject to advance income measures, regulated fuel prices.
Fitch says that we believe that the level of Pakistan’s foreign exchange reserves will remain low, a slight improvement is possible in fiscal year 2023.
According to Fitch, getting the money is conditional on the IMF agreement, friendly countries are willing to give another 5 billion dollars with the old debt rollover, the current account deficit will be 4.7 billion dollars in the current fiscal year, and the current account deficit in the fiscal year 2022 will be 17 billion dollars. was
Fitch added that the current account deficit narrowed as a result of lower imports and a reduction in foreign exchange reserves.