Global rating agency Moody’s On Wednesday Credit rating of Pakistan The outlook has been upgraded from stable to positive.
Continued on Wednesday Update Pakistan’s Prime Minister Shehbaz Sharif expressed satisfaction with Moody’s downgrading Pakistan’s credit rating from CAA-3 to CAA-2.
The international rating agency said Pakistan’s credit rating has improved due to improving economic conditions and Pakistan’s default risk has been reduced to a CAA Two rating.
The agency added that following these improved indicators, Pakistan’s outlook changed from stable to positive.
According to the agency International Monetary Fund (IMF) The confidence of the country’s external financial institutions has increased after staff-level agreements were reached for a new and expanded bailout program of seven billion dollars.
In February, Moody’s rating agency maintained Pakistan’s long-term credit rating at CAA-3, indicating low debt repayment capacity and high probability of default and investment risks.
The rating agency said it expects the IMF to approve an extended bailout (EFF) in the next few weeks after the country’s foreign reserves have doubled compared to June 2023. However, he noted that these are still below the threshold required to meet external financing needs.
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As far as the outlook is concerned, the positive outlook improves the balance of risks, the agency said.
“This underscores the possibility that the government is able to further reduce its sovereign liquidity and vulnerability risks and, with the support of the IMF program, can achieve a better fiscal position than we currently expect,” he added.
He further said that revenue raising measures including implementation of sustainable reforms could increase the government’s revenue base and improve Pakistan’s debt affordability.
However, the agency warned that uncertainty remains over the government’s ability to sustain the implementation of reforms.
Moreover, Saudi Arabia and the United Arab Emirates have pledged a total investment of 15 billion dollars in Pakistan, which, if fulfilled, will significantly increase Pakistan’s foreign exchange reserves.
Further, if the country’s liquidity and external risks decline, the rating will be further upgraded, subject to timely completion of IMF reviews.
However, he warned that the rating could be downgraded if external risks increase.
Prime Minister’s expression of satisfaction
Prime Minister Shahbaz Sharif has expressed satisfaction over the upgrade of Pakistan’s credit rating by the international rating agency Moody’s.
According to the statement issued by the Prime Minister’s office, Shahbaz Sharif while presiding over the review meeting on the development and investment of the country’s economy in Islamabad said that the economy is on the path of development after stabilization because we have made the country default. saved from
The prime minister further said that Moody’s upgradation of the country’s rating to CAA-2 is a recognition of the government’s strong economic policies.
He hoped that the country’s economy will move forward in a positive direction at the same pace.
In the meeting, the Prime Minister was informed about the improvement in Pakistan’s rating by the international rating agency Moody’s, the progress on investment agreements with friendly countries in various fields and the ongoing projects. The meeting was also apprised of the progress on the projects under the second phase of the China Pakistan Economic Corridor.
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2024-08-28 23:43:10