... policies, underpinned by structural reforms, have eased external financing risks and provide a degree of resilience to shocks. This is reflected by sharp improvements in fiscal and external balances, and a modest rebuilding of FX reserves. Fiscal discipline and revenue mobilization should support sustained primary surpluses that keep government debt-to-GDP on a downward trend. Still, the credit profile is hindered by still-high government debt-to-GDP and debt service ratios. FX reserve buffers remain modest. Revenues Boost Primary Surpluses: Fitch Ratings forecasts a healthy primary surplus of 2.6% of GDP in 2026, albeit down from the record 5.4% surplus in 2025, buoyed by sustained revenue growth, which is offsetting higher expenditures for Cyclone Ditwah reconstruction and target energy support measures. We expect primary surpluses to remain above 2% of GDP in the next few years, driven by steady revenue and expenditure restraint, underpinned...
