The American rating agency Fitch changed Pakistan’s outlook from stable to negative.
In the report released by Fitch, increasing political instability, weak government unity, and early elections have been cited as reasons for changing the outlook. According to the report, the negative rating reflects Pakistan’s deteriorating liquidity and external funding situation from the beginning of 2022.
The report said that 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 inflation rate will remain high due to expensive fuel.
According to the report, the current account deficit was 17 billion dollars in the financial year 2022 and this deficit is estimated to be 10 billion dollars in the next financial year.