Why did Fitch Ratings upgrade Pakistan's credit rating to 'B-' in April 2025?

Significant decline in government debt-to-GDP ratio

Implementation of structural reforms under the IMF program

Improvement in fiscal discipline and narrowing of budget deficits

All of the above

Fitch Ratings upgraded Pakistan's credit rating from 'CCC+' to 'B-' in April 2025, citing several key factors:

Improved Fiscal Discipline: The government's efforts to narrow budget deficits and implement structural reforms under the IMF program contributed to the upgrade.
Structural Reforms: Pakistan's commitment to implementing structural reforms, including agricultural tax legislation and fiscal consolidation measures, was recognized by Fitch.
Economic Indicators: Positive economic indicators, such as a reduction in the government debt-to-GDP ratio and improved fiscal performance, supported the rating upgrade.