Fitch has downgraded Pakistan’s rating to triple C

Global rating agency Fitch downgraded Pakistan’s long-term foreign currency debt rating to triple C.

Pakistan’s first triple C rating in the rating agency Fitch, the international organization has taken this decision due to the dangerously low foreign exchange reserves.

Fitch wrote that as the level of Pakistan’s foreign exchange reserves remains low, we believe the ninth review of the IMF program will be successful.

According to the report, default or debt restructuring is a real possibility, with the completion of the ninth review subject to earlier revenue measures and regulated fuel prices.

According to the Global Rating Agency report, we believe that the level of foreign exchange reserves will remain low, with a slight improvement possible in the remaining years of FY2023.

According to the report, there is a possibility of getting 3.5 billion dollars from other sources in addition to the remaining 2.5 billion of the IMF program.

The Fitch report said that access to the money is conditional on an IMF agreement, with friendly countries willing to provide an additional $5 billion with a rollover of old debt.

According to the report of the World Rating Agency, the current account deficit will be 4.7 billion dollars in the current financial year, and the current account deficit in the financial year 2022 was 17 billion dollars.

According to the Fitch report, the current account deficit was reduced by reducing imports and reducing foreign exchange reserves, the current account deficit was also reduced by raising interest rates and reducing energy consumption.