Fitch on Friday affirmed Pakistan’s “B negative” rating with a stable outlook against expectations of an improvement due to finalisation of the bailout package between Pakistan and the IMF. Pakistan’s tough decisions on economy to pay dividends: FitchBut the international rating agency said Pakistan’s ratings reflected the challenging external finances and low reserve coverage, high public debt and weak governance indicators. It stated that Pakistan’s rating was constrained by structural weaknesses in its development and governance indicators. It said the fiscal deficit would remain high at 7.1% of gross domestic product (GDP) by the end of next fiscal year. However, it said, factors that could lead to a negative rating action were Pakistan’s inability to mobilise sufficient external funding to ease financing strains through an IMF programme or other forms of bilateral assistance.

Source: The Express Tribune June 15, 2019 03:56 UTC