In view of the worsening liquidity and foreign funding situation since the beginning of this year, Fitch Ratings on Monday downgraded Pakistan’s outlook to negative from stable, while affirming its long-term foreign-currency (LTFC) issuer default rating (IDR) at ‘B-‘.
In a statement, Fitch Ratings said that the revision of the outlook to negative reflects a significant deterioration in Pakistan’s external liquidity position and financing conditions since early 2022.
“We assume IMF board approval of Pakistan’s new staff-level agreement with the IMF, but see considerable risks to its implementation and to continued access to financing after the programme’s expiry in June 2023 in a tough economic and political climate,” read the statement.
More to follow…
