Moody’s raises Pakistan’s outlook to stable B3 from negative
KARACHI: Moody’s has upgraded Pakistan’s outlook to stable from negative.
The rating agency has reaffirmed the sovereign credit rating at B3.
The change in outlook is primarily driven by the improvement in the balance of payments position, supported by policy adjustments and currency flexibility.
The Finance Ministry in a statement said the upgradation of outlook to stable is an affirmation of the government’s success in handling the country’s economy.
The finance ministry said the government remains fully committed to its reforms agenda, which is producing the outcomes that will lay a firm foundation for accelerated, sustainable and inclusive growth in future.
Moody’s has also appreciated the government’s reforms agenda. In its press release, the rating agency highlighted Pakistan’s progress towards macroeconomic stabilization with reduced vulnerabilities on the external account. It also noted the ongoing fiscal reforms which will help in mitigating risks related to debt sustainability and government liquidity.
The rating affirmation reflects Pakistan’s relatively large economy and robust long term growth potential, coupled with ongoing institutional enhancements that raise policy credibility and effectiveness.
In a tweet, Adviser on Finance Hafeez Sheikh said the upgradation of outlook is affirmation of government’s success in stabilizing the country’s economy and laying a firm foundation for robust long term growth.
In his tweet, Minister for Planning and Development Asad Umar said Moody’s has acknowledged success of government’s stabilization measures and it should help improve country’s access to financing and reduce its cost.