ISLAMABAD : Fitch credit rating agency on Monday upgraded Pakistan's long-term foreign currency issuer default rating to CCC from CCC-, a positive sign for a country reeling under its worst economic crisis.
"We expect the consolidated general government fiscal deficit to widen to 7.6 per cent of GDP in FY24," it said. Islamabad signed the short-term IMF deal on June 30 under a standby arrangement that will disburse $3 billion over a nine- month period, subject to approval by the IMF's board, which is meeting on July 12.
With sky-high inflation and foreign exchange reserves barely enough for a month of controlled imports, analysts say Pakistan's economic crisis could have spiralled into a debt default in the absence of the IMF bailout.The authorities expect $25 billion in gross new external financing in FY24, against $15 billion in public debt maturities, including $1 billion in bonds and $3.6 billion to multilateral creditors, the agency said.