S&P Global affirmed Pakistan’s long-term sovereign credit rating at “CCC+” on Tuesday, citing the country’s dependence on external aid to meet its debt obligations amid a prolonged economic crisis.

The country struck a $7-billion bailout deal with the International Monetary Fund (IMF) earlier this month to stabilize the economy after getting on the brink of a sovereign default.

The latest pact with the IMF included tough steps like raising tax on farm income, emphasizing the need to boost government revenue and trim fiscal deficit.

Pakistan is also in talks with Saudi Arabia, the United Arab Emirates and China to meet gross financing needs under the IMF programme.

Pakistan’s finance ministry forecasts July inflation at 12-13%

While near-term default risks have eased, the ratings agency said strong foreign fund inflows and moderate current account deficits would likely be required to restore Pakistan’s external buffers.

“Persisting inflationary pressures, coupled with modest economic activity, continue to complicate the implementation of measures to consolidate the government’s wide fiscal deficit,” it said.

S&P warned that a difficult political backdrop may slow down economic growth, stressing the need for a stable political climate to repair Pakistan’s creditworthiness. The agency also affirmed the country’s stable outlook.

Fitch had on Monday upgraded Pakistan’s long-term foreign-currency issuer default rating to ‘CCC+’, on account of greater availability of external funding under the new IMF deal.