Pakistan is taking steps towards sovereignty due to PTI’s economic policies – Fitch Ratings
The current government's efforts have significantly reduced current account deficits says the report.
- Pakistan is on the way of sustainable development with improved current account deficit & less dependence on foreign debt- Fitch Ratings
- According to Fitch, Pakistan could meet monetary requirements by improving its exports.
Fitch Ratings- an American credit agency and one of the well-recognized rating organizations designed by the US has acknowledged the economic policies of the current government of Pakistan.
According to Fitch ratings 2019, Pakistan is on the way of sustainable development with improved current account deficit & less dependence on foreign debt. Over the last year, Pakistan is one of the countries where the business climate has improved a lot said Fitch ratings.
According to the Fitch Rating report, the current Pakistani government’s economic policies are admirable. The current government’s efforts have significantly reduced current account deficits says the report.
Improving exports could help
The report also said that Pakistan could meet monetary requirements by improving its exports. However, it is not clear that it will take how much time for Pakistan to attract foreign investment.
Likewise, it said the nation faces yearly external debt commitments of about $8-9 billion for many coming years mostly related to the reimbursements for loans under the China-Pakistan Economic Corridor.
Fitch likewise said the nation has confronted outer vulnerabilities in the course of the most recent year yet has profited by the International Monetary Fund (IMF) program affirmed in July.
Reforms could be politically challenging
Pakistan is rated ‘B-negative’ by the agency. Reforms, which include a push towards documentation of the economy, and increasing tax revenue targets, are not well received by the local sectors.
Meanwhile, according to the Fitch report, “reforms could be politically challenging.”
The rating organization’s admonition is justified by the nation’s checked history with the IMF as it has neglected to finish on its dedication to basic changes.