ISLAMABAD
\nThe Fitch Ratings has upgraded Pakistan\u2019s Long-Term Foreign-Currency Issuer Default Rating (IDR) to \u2018CCC\u2019 from \u2018CCC, indicating a positive development towards betterment of country\u2019s economy
\nFederal Minister for Finance and Revenue, Senator Mohammad Ishaq Dar in a tweet said it was another positive development towards current economic revival journey. He congratulated Prime Minister, nation, government allies and economic team for this achievement.
\n\u201cGlobal Rating Agency \u201cFitch\u201d upgrades Pakistan\u2019s Long Term Foreign-Currency rating to CCC from IDR (Issuer Default Rating)\u2026.Another positive news towards current economic revival journey, AlhamdoLilah\u2026Congratulations to PM @CMShehbaz, the Nation, Govt Allies & Economic Team,\u201d the minister tweeted.
\nThe rating agency has identified key indicators that contributed in the positive development rating for the country which include improvement in easing external financing risks. It says, the upgrade reflects Pakistan\u2019s improved external liquidity and funding conditions following its Staff-Level Agreement (SLA) with the International Monetary Fund (IMF) on a nine-month Stand-by Arrangement (SBA) in June.
\n\u201cWe expect the SLA to be approved by the IMF board in July, catalysing other funding and anchoring policies around parliamentary elections due by October,\u201d it adds.
\nAccording to the report, Pakistan has recently taken measures to address shortfalls in government revenue collection, energy subsidies and policies inconsistent with a market-determined exchange rate, including import financing restrictions. These issues held up the last three reviews of Pakistan\u2019s previous IMF programme, before its expiry in June.
\nMost recently, the government amended its proposed budget for the fiscal year ending June 2024 (FY24) to introduce new revenue measures and cut spending, following additional tax measures and subsidy reforms in February. The authorities appeared to abandon exchange-rate management in January 2023, although guidelines on prioritising imports were only removed in June.
\nIt says, IMF board approval of the SBA will unlock an immediate disbursement of USD1.2 billion, with the remaining USD1.8 billion scheduled after reviews in November and February 2024.
\nSaudi Arabia and the United Arab Emirates have committed another USD3 billion in deposits, and the authorities expect USD3-5 billion in other new multilateral funding after the IMF agreement. The SBA should also facilitate disbursement of some of the USD10 billion in aid pledges made at the January
\n2023 flood relief conference, mostly in the form of project loans (USD2 billion in the budget). It says, Pakistan\u2019s current account deficit (CAD) has narrowed sharply and forecasted it at about USD4 billion (1% of GDP) in FY24, after USD3 billion in FY23 and over USD17 billion in FY22. The report also identified that country\u2019s reserves were still low and fiscal deficit was wide.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD The Fitch Ratings has upgraded Pakistan\u2019s Long-Term Foreign-Currency Issuer Default Rating (IDR) to \u2018CCC\u2019 from \u2018CCC, indicating a positive development towards betterment of country\u2019s economy Federal Minister for Finance and Revenue, Senator Mohammad Ishaq Dar in a tweet said it was another positive development towards current economic revival journey. He congratulated Prime Minister, nation, […]<\/p>\n","protected":false},"author":2,"featured_media":342402,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-342518","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-top-news"},"yoast_head":"\n