Fitch Ratings Evaluates Pakistan FY27 Budget and Warns of Revenue Vulnerabilities Despite Fiscal Discipline Improvements
Fitch Ratings notes Pakistan fiscal discipline improvements in the FY27 budget but raises questions over revenue durability and debt affordability.
Fitch maintains Pakistan’s B- foreign currency rating, assigns Recovery Rating RR4
Fitch Ratings has maintained Pakistan’s long-term foreign currency debt rating at B- and assigned a Recovery Rating of RR4, reflecting the updated sovereign credit assessment framework introduced in September 2025.
Pakistani Banks Gain Momentum as Fitch Sees Brighter Economic Outlook
Fitch Ratings has upgraded Pakistan’s credit profile, signaling better economic prospects for the country’s banking sector. With inflation easing, interest rates reduced, and stronger capital buffers, Pakistani banks are expected to expand private-sector lending and strengthen profitability in the coming years.