Fitch revises Pakistan's outlook to Negative

Global rating agency Fitch has revised Pakistan’s outlook from stable to negative citing political instability, ARY News reported. 

The global credit rating company Fitch has demoted Pakistan’s outlook from stable to negative amid the current political turmoil in the country.

According to a report compiled by Fitch, Pakistan’s outlook has been changed due to derailing liquidity, foreign loans, and a weak government alliance, the agency said. The agency also has concerns regarding the fulfilment of the terms with the International Monetary Fund (IMF).

The foreign reserves are under severe pressure due to the increasing current account deficit, the report says. Pakistan’s current account deficit has spiked to $17 billion, which is expected to go down to $10 billion in the next fiscal year.

The inflation rate would remain high due to the global prices and scarcity of energy, it added.

A former spokesperson to the Finance Ministry Muzammil Aslam has said that Pakistan’s rating could also decline after the outlook change.

Talking to ARY News after the outlook change, the PTI leader said that Moody is also hinting at changing Pakistan’s rating. The PML-N-led government has destroyed the economy of the country.

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The government should resign and call for fresh elections as soon as possible, he added.