Moody's investor services raise alarm bells for the Pakistan economy
ISLAMABAD - Moody's investor services have raised alarm bells for the Pakistan economy.
Pakistan does not have enough foreign exchange reserves to pay its public and private external debt due over this year, a report by Moody’s said on Thursday.
“Foreign exchange reserves are low, and gross borrowing requirements are large in Pakistan and Sri Lanka, threatening the ability of these governments to refinance debt and fund deficits affordably,” Moody’s Investors Service said in its report.
The credit rating agency said the total public and private external debt due over the next year is larger than foreign exchange reserves.
Foreign exchange reserves are on lower side in Pakistan. The lower reserves threaten government to refinance debt, it noted.