ISLAMABAD – External pressure over Pakistan economy threatening stability,a new report has revealed.
Pakistan’s foreign exchange reserves continue to remain vulnerable ofexternal pressures, while liquidity risks also remain high, said Moody’s ina periodic review of the country.
“The country has high susceptibility to event risk driven by heightenedexternal vulnerability as external pressures continue to weigh on thecountry’s foreign-exchange reserve adequacy, while political and governmentliquidity risks remain elevated in Pakistan,” the Moody’s document,available with a private media outletlink,stated.
Moody’s Investors Service reviews its ratings periodically in accordancewith regulations – either annually or, in the case of governments andcertain EU-based supranational organisations, semi-annually.
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This development comes as no surprise as Pakistan’s economy is continuallytaking a beating, which is evident in the deteriorating key macroeconomicindicators and the country’s weak fiscal position.
Moody’s did not announce any credit rating for the country. The agency hadmaintained ‘B3 negative’ credit rating for Pakistan due to heightenedexternal vulnerability risk. However, earlier, it had hinted at a furtherdowngrade if the country’s external position continued to weaken anderosion of foreign exchange reserves.
