Moody’s reaffirms Pakistan’s B3 rating, maintains stable outlook

Moody’s Investors Service on 12th July, 2017 reaffirmed Pakistan’s sovereign rating at B3 with Stable outlook. Pakistan’s medium-term growth  outlook has been categorized as strong in the backdrop of China Pakistan Economic Corridor addressing infrastructure and energy constraints and the continuing macro stability enhancing reforms initiated by the present Government. The rating is supported by Pakistan’s strong growth performance and its continued commitment towards reform implementation to reinforce fiscal and monetary discipline achieved over the last four years. M0ody’s expects real GDP growth co rise towards 6% over the next few years as the, country improves its competitiveness and continues Its process towards alleviating supply side bottlenecks. Elimination of energy deficit, improved business productivity and resultant boost to exports .is, expected to provide impetus for a high growth trajectory. The outlook for growth is strong with stable macroeconomic indicators, discipline in fiscal and inflation management and maintenance of adequate foreign exchange reserves . Moody’s report acknowledges Pakistan’s improved economic fundamentals and financial strengthen. While maintaining Pakistan’s rating, Moody’s highlights that Pakistan’s debt profile and institutional strength has not witnessed any material change. While underscoring the resilience of Pakistan’s economy, Moody’S indicates stalling-of the Government’s reform agenda including revenue reforms, any widening of fiscal deficit and weakening-of external payments position as future risks to the economy.

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