A setback for Pakistan economy outlook from international credit rating agency

A setback for Pakistan economy outlook from international credit rating agency

LAHORE: A setback for Pakistan economy outlook from international credit rating agency S&P.

S&P has downgraded Pakistan’s long-term foreign currency debt rating from B to B- and maintained a stable outlook for its long-term rating.

However, the rating agency affirmed the short-term sovereign and issue rating at B.

Also, S&P stated that its stable outlook for Pakistan reflected its anticipation that Pakistan had sufficient financing to meet its external financing requirements over the next twelve months,

It projected that neither external nor fiscal metrics will worsen beyond their current forecasts.

Additionally, S&P said it would raise their ratings for Pakistan if the economy materially outperformed their expectations i.e. strengthening the country’s fiscal and external fiscal positions.

Moreover, the lowering of the ratings was a consequence of S&P’s more subdued expectations regarding Pakistan’s economic growth, alongside intensified external and fiscal risks.