Fitch upgrades Pakistan's rating after IMF deal - SUCH TV
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Rating agency Fitch on Monday revised its outlook on Pakistan from ‘CCC-’ to ‘CCC’ as Pakistan managed to secure a last-minute bailout deal. In the latest update, the American credit rating agency said the upgrade depicts improved external liquidity and funding conditions in light of SLA with the IMF on a nine-month Stand-by Arrangement (SBA). A statement issued by Fitch said “We expect the SLA to be approved by the IMF board in July, catalysing other funding and anchoring policies around parliamentary elections due by October. Nevertheless, programme implementation and external funding risks remain due to a volatile political climate and large external financing requirement.” It said Pakistan took measures to address shortfalls in government revenue collection, energy subsidies and policies inconsistent with a market-determined exchange rate, including import financing restrictions. Fitch said these issues held up the last three reviews of Pakistan’s previous IMF pr...