Moody’s Investors Service published, on its website, the periodic review ofa group of countries, including Pakistan, and said that the credit profileof Pakistan (issuer rating B3) reflects the country’s “baa2” economicstrength.
The credit profile of Pakistan (issuer rating B3) reflects the country’s“baa2” economic strength, which is underpinned by the robust long-term GDPgrowth potential and large scale of the economy, balanced against low percapita incomes and global competitiveness, said the released statement.
This latest published report does not issue any new ratings rather providea review of the already designated credit rating and the respectiveeconomic factors surrounding the rating.——————————
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Moody’s said that Pakistan’s “b2” institutions and governance strength thatbalances still weak executive institutions and fiscal policy credibilityand effectiveness against a lengthening track record of effective checksand balances and judicial independence, as well as increasing monetary andmacro-prudential policy effectiveness.
The report added that the government’s “ca” fiscal strength is driven byits high government debt burden and narrow revenue base, which hinders debtaffordability and reduces fiscal flexibility given ongoing infrastructureand social spending needs. Furthermore, the report added that the “b”susceptibility to event risk driven by the external vulnerability, asforeign-exchange reserve adequacy, though improving, remains low.
