Fitch Ratings Confirms Pakistan's Economic Stability

Abdullah Hussain (@Abdulla99267510) Published February 07, 2025 | 06:15 PM

A Fitch Ratings report says measures allowed Pakistan’s current account to move into a surplus of about one point two billion dollars in the six months to December 2024 while foreign exchange market reforms in 2023 also facilitated the shift

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-Feb 7th, 2025) Global rating agency “Fitch Ratings” confirmed Pakistan's economic stability and rebuilding external buffers.

Fitch Ratings said that that the strong remittance inflows, robust agricultural exports and tight policy settings made great greatly contributions towards Pakistan’s economic stability and rebuilding external buffers.

A report of the Fitch Ratings said economic activity, having absorbed tighter policy settings, is now benefitting from stability and falling interest rates and real value added is to be expected to expand by three percent in the current fiscal year.

It stated these measures allowed Pakistan’s current account to move into a surplus of about one point two billion Dollars in the six months to December 2024, while foreign exchange market reforms in 2023 also facilitated the shift.

It further said cut in policy rates further helped in taming consumer price inflation, which fell to just over two percent in last month, down from an average of nearly 24 percent previous year.

The report said growth in credit to the private sector in Pakistan has also turned positive in real terms in October last year for the first time since June 2022.

Progress on fiscal reform, despite some setbacks, was also noted in the report.

Moreover, the provinces also undertook legislation, imposing tax on higher agricultural income.