Fitch Ratings has affirmed Pakistan’s sovereign credit rating at B- with a stable outlook. The agency did not upgrade the country despite expectations in some quarters.
Fitch said Pakistan continues to face strong external financing pressures. These pressures are linked to large debt repayments due this year. The country is also managing tight foreign exchange conditions.
The agency noted that Pakistan’s timely debt repayments have helped maintain financial credibility. It highlighted recent Eurobond payments and ongoing bilateral obligations.
Fitch clarified earlier references to a $3.5 billion UAE payment. It said the amount relates to a scheduled return of deposits. The clarification came after initial confusion in its statement.
The rating agency said Pakistan’s macroeconomic situation has shown some improvement. This is due to fiscal consolidation measures and IMF-supported reforms. These steps have supported overall stability.
Fitch also noted that foreign exchange buffers have improved over the past year. However, it said reserves remain limited and under pressure from external shocks.
The agency highlighted Pakistan’s growing role in regional diplomacy. It said Islamabad’s involvement in ceasefire-related efforts may ease external financial stress.
Energy imports remain a key vulnerability for Pakistan. The country depends heavily on Gulf oil supplies. This makes it sensitive to geopolitical tensions in the Middle East.
Fitch warned that inflation is likely to remain elevated in the coming months. It also projected moderate economic growth under tight financial conditions.
The agency said Pakistan’s financing needs remain high this year. These will be met through a mix of IMF support, bilateral inflows, and debt rollovers.
Despite challenges, Fitch said Pakistan is showing gradual economic stabilization. It credited ongoing reforms and external support for preventing further deterioration.
