ISLAMABAD: Prime Minister Imran Khan's financial advisor Abdul Hafeez Sheikh on Monday said that Fitch, one of the world's top credit rating agencies, has maintained its B - negative (b-) rating with a consistent economic outlook.
He said Fitch’s rating was a testament to the consistent and efficient financial management followed by the current government. “It reflects the growing confidence of international organizations in the country’s economic policies,” he said.
Hafeez Sheikh said that the government had drawn its attention to the protection of public employment during the coronavirus and that these policies had improved the economy even during the epidemic.
It is worth mentioning here that in January 2020, the International Credit Rating Agency, T-Fitch, validated Pakistan’s Sovereign Credit Rating with a consistent view of B-. Fitch said in a statement that the good external outlook was due to policy measures taken by the government.
Going forward, Fitch expects the current fiscal deficit to be 2.1 percent of GDP in fiscal 2015 and 1.9 percent in fiscal 21, up from 4.9 percent in the previous fiscal year. The rating agency praised State Bank of Pakistan for adopting a favorable exchange rate, Radio Pakistan reported.
According to Fitch, as the reform agenda is clear from the successful review of the establishment with the IMF, the government is consolidating the public economy, while strengthening the revenue base, expanding the tax base and documenting the economy.
Fitch acknowledges improvements in financial discipline, the recently introduced Public Financial Management Act and measures taken by the government to manage domestic debt losses following borrowing from the State Bank.