*ISLAMABAD: **Moody’s rating agency has released latest report on health ofPakistan economy in the Fiscal Year 2019-20.*
*Moody’s rating agency has said that external pressures continue to weighon Pakistan’s foreign-exchange reserve adequacy, while political andgovernment liquidity risks remain elevated in Pakistan.*
In its latest periodic review of Pakistan economy stated that the creditprofile of Pakistan (rating B3) reflects the country’s “Moderate (+)”economic strength, which is underpinned by the relatively robust GDP growthpotential and large scale of the economy, limited by very low per capitaincome and global competitiveness.
The review said that external pressures continue to weigh on the country’sforeign-exchange reserve adequacy, while political and government liquidityrisks remain elevated in Pakistan.
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In a previous Moody’s had anticipated possible deviation from fiscalreforms in India and Pakistan due to escalating political tensions betweenthe two biggest south Asian economies, saying lukewarm growth could throw aspanner in their revenue-enhancing measures.
“Both economies are already facing near-term challenges, and a sustainedconflict would risk resulting in weaker growth through a prolonged hit toconsumer and business confidence, as well as foreign direct investment,”Moody’s said in an earlier report.
