By Safina khan / LONDON: Pakistan has received another important vote of confidence from international financial markets, with global ratings agency Moody’s upgrading Pakistan’s sovereign credit rating from Caa1 to B3 and maintaining a stable outlook. (Moody’s)
Moody’s said the upgrade reflects macroeconomic stabilisation, improvements in governance, a stronger external position and easing external vulnerability risks. Pakistan’s foreign exchange reserves have also strengthened, while progress under the IMF-supported reform programme has improved policy credibility and access to official financing
The development comes after S&P Global also upgraded Pakistan’s sovereign rating to B in July, citing stronger institutional stability and effective implementation of reforms under the IMF programme
The latest Moody’s decision is significant because a stronger sovereign credit profile can improve international investor confidence and, over time, help Pakistan access commercial financing on more favourable terms. It also strengthens the country’s position as it seeks to rebuild reserves, improve fiscal discipline and reduce external vulnerabilities.
