Fitch upgrades Pakistan credit rating

Fitch Ratings has upgraded Pakistan’s credit rating due to improved external funding prospects following a new IMF bailout. The long-term foreign-currency issuer default rating was raised to CCC+ from CCC. However, Fitch warned that any deterioration in external liquidity conditions or delays in the IMF program reviews could lead to downgrades in the future. The upgrade reflects greater certainty over external funding availability, but Pakistan still faces challenges in implementing reforms. The government will need to secure funding assurances from bilateral partners before IMF board approval. Pakistan has a history of boom-and-bust cycles and has received numerous IMF bailouts in the past.