The US credit rating agency Fitch has downgraded the outlook for Pakistan’s economy from stable to negative.
According to the details, in the report released by the American rating agency Fitch, increasing political instability in the country, weak government unity, and early elections are the reasons for changing the outlook.
The negative rating reflects Pakistan’s deteriorating liquidity and external funding situation from the start of 2022, the report said.
According to the report released by Fitch, there are concerns over the implementation of the IMF agreement and access to funding after June 2023, while foreign exchange reserves are under pressure due to the current account deficit.
The report stated that the current account deficit was 17 billion dollars in the fiscal year 2022 and this deficit is estimated to be 10 billion dollars in the next financial year.
The report presented by Fitch further states that the inflation rate will remain high due to expensive fuel.
