News

Pakistan’s current credit rating is supported by its robust long-term GDP growth potential

Moody’s Investors Service periodically releases reviews of countries around the globe highlighting their credit ratings and other financial research in light of recent developments. In its latest review of Pakistan published on 18 December 2020, Moody’s has stated that the credit profile of Pakistan i.e. “B3” reflects the country’s “baa2” economic strength.

They go on to say that the country’s current economic strength “baa2” is supported by the robust long-term GDP growth potential and large scale of the economy, balanced against low per capita incomes and global competitiveness.

Moody’s says, “its ‘b2’ institutions and governance strength that balances still weak executive institutions and fiscal policy credibility and effectiveness against a lengthening track record of effective checks and balances and judicial independence, as well as increasing monetary and macroprudential policy effectiveness.”

The review also says that the government’s “ca” fiscal strength driven by its high government debt burden and narrow revenue base which hinders debt affordability and reduces fiscal flexibility given ongoing infrastructure and social spending needs; and its “b” susceptibility to event risk driven by the external vulnerability, as foreign-exchange reserve adequacy, though improving, remains low.

Image Source: DW

Sponsored
Talha Ikram

Share
Published by
Talha Ikram
Tags: GDP

Recent Posts

Samsung Partners with Sapphire Electronics for Local Production in Pakistan

Sapphire Electronics (Pvt) Limited, a wholly owned subsidiary of Reliance Cotton Spinning Mills Limited, has…

12 mins ago

Apple iPhone 16 Pro Max vs Google Pixel 9 Pro XL ; Key Insights You Need to Know

Apple and Google, two tech giants, have designed their latest offerings to meet the needs…

41 mins ago

What’s New in iOS 18.2.1? Here’s What You Should Know

iOS 18.2 introduces thrilling new features like Visual Intelligence, Image Playground, and upgraded writing tools.…

2 hours ago

Federal Govt Official Urges ‘Less’ Internet Use, Only for Important Matters

On Sunday, Syed Sajid Mehdi, Pakistan's Parliamentary Secretary for the Cabinet Division, proposed a solution…

2 hours ago

Federal Government Announces December 25 as Public Holiday

ISLAMABAD: The federal government has declared December 25, 2024, as a public holiday to mark…

2 hours ago

Samsung Terminates Employees Over Galaxy S25 Ultra Images Leak

An early setback occurred for Samsung's much anticipated Galaxy S25 series when unauthorized photographs of…

2 hours ago