Rupee Expected to Reach Rs. 310 per Dollar by 2025: Fitch Solutions
Fitch Solutions forecasts a decline in Pakistan’s policy rate to 16% this fiscal year and 14% next year. They also predict the PKR will reach Rs. 290 by the end of this year and Rs. 310 by 2025.
The latest report highlights challenges for Pakistan’s economy due to ongoing political unrest, urban protests, and potential natural disasters. It also notes that former Prime Minister Imran Khan is likely to remain in jail despite legal appeals.
The report expects the economy to grow by 3.5% in FY 2024-25, supported by IMF reforms. However, the country faces a large external debt burden and a persistent current account deficit, with a forecasted deficit of 1.1% of GDP from 2024 to 2027.
Fitch warns that while a severe debt crisis may be avoided, Pakistan’s debt levels will stay high, and reliance on imports and foreign borrowing will continue.
