Fitch affirms Pakistan’s B- rating, calls outlook ‘stable’

KARACHI  – International agency Fitch says that Pakistan’s fiscal deficit is decreasing and the pace of growth is improving, the growth rate is expected to be 1.2 percent this financial year.

According to a report released by Fitch Ratings on Pakistan’s economy, the country’s current account deficit is expected to be 1.7% this fiscal year while remittances are expected to fall by 10% due to the global economic slowdown caused by coronavirus.

Fitch says Pakistan will repay USD 10.3 billion of external debt in fiscal year 2021 and in 2022, the country has to repay a further 8.9 billion.

Fitch says that due to coronavirus, Pakistan’s fiscal deficit will be 8.2% in FY2021. However, the pace of development in Pakistan is gradually improving. In the current financial year, the growth rate of Pakistan is expected to be 1.2% against negative 0.4% in the previous financial year.