Fitch Ratings has affirmed Pakistan's sovereign credit rating at B- with a Stable Outlook in its press release dated 13th January, 2020.Fitch takes note of the improved external resilience due to the policy actions taken by theGovernment
Islamabad (Pakistan Point News / Online - 13th January, 2020) Fitch Ratings has affirmed Pakistan's sovereign credit rating at B- with a Stable Outlook in its press release dated 13th January, 2020.Fitch takes note of the improved external resilience due to the policy actions taken by theGovernment. Going forward, Fitch forecasts further narrowing of the current account deficit to2.1 percent of GDP in FY20 and 1.9 percent in FY21, from 4.9 percent in the last fiscal year.
TheRating Agency has also appreciated the adoption of a flexible exchange rate by the State Bank ofPakistan. According to Fitch, with the reform agenda on track as evident from the successfulreview of the arrangement with the IMF, the Government is consolidating public finances thoughstronger revenue growth, broadening of tax base and increased documentation of the economy.Fitch has also acknowledged improved fiscal discipline, ensured by the recently introducedPublic Financial Management Act and the steps taken by the Government to manage domesticdebt risks following cessation of borrowing from the State Bank of Pakistan.
The country'sprogress on business reforms, reflected in the country's move from 136th to 108th in the WorldBank's latest Ease of Doing Business survey is also noted as a significant achievement.Going forward, Fitch Ratings expects continuation of policies to further ease external accountvulnerabilities, strengthening of fiscal consolidation and further improvement in businessenvironment as key drivers for enhanced economic stability.
