Global ratings agency Fitch on Tuesday upgraded Pakistan’s foreign currency credit rating to ‘B-’ from ‘CCC+’, citing increased confidence in the country’s progress on narrowing its budget deficits. The upgrade also reflects confidence that the country would implement structural reforms, supporting its International Monetary Fund (IMF) programme performance and funding availability, Fitch said. The agency said though ongoing global trade tensions could create external pressure, its low dependence on exports and market financing should mitigate risks. The economy had been teetering on the brink of default ever since inflation rose to a record high in May 2023 and reserves started shrinking, but has seen some respite thanks in part to a $7 billion bailout programme from the IMF. In March, the IMF reached a new deal with Pakistan, which could unlock $1.3 billion in cash. More to follow