Cites partia­l revers­al of gains since the end of IMF’s three-year loan progra­mmeKARACHI: Fitch Ratings has announced that it has revised the outlook on Pakistan’s long-term foreign and local currency issuer default ratings to negative from stable and has affirmed ‘B’ rating for both the categories. In particular, foreign currency reserves of the country have declined and fiscal deficit has widened. Bond float not enough, Pakistan going to be IMF’s customer againThe IMF had provided a loan of $6.2 billion under the programme to help shore up Pakistan’s shrinking foreign currency reserves. “It remains to be seen how much flexibility the authorities will tolerate should there be sustained downward pressure on the currency,” Fitch remarked. “The government views last year’s breach of the target as temporary and aims to return to a path of fiscal consolidation,” Fitch said.

Source: The Express Tribune January 26, 2018 04:03 UTC