US welcomes Moody’s up-gradation of Pakistan’s economic outlook

ISLAMABAD: US in-charge of South Asia Affairs at the State Department, Alice Wells, on Wednesday welcomed Moody’s revision in Pakistan’s credit outlook.

In a tweet shared by the State Department, Acting Assistant Secretary for South and Central Asia Wells wrote: “Pleased to see that @MoodysInvSvc has revised Pakistan’s credit outlook to stable thanks to @FinMinistryPak’s reform efforts and IMF program. With bold economic reforms, Pakistan can boost growth, attract private capital, and expand exports.”

The New York-based credit rating agency raised Pakistan’s economic outlook from negative to stable on the back of the country’s reforms supported by an IMF programme.

It said improvements in the balance of payments was a primary driver of the rating action, but added that foreign exchange buffers would still take time to rebuild.

The upgrade was welcomed by the Ministry of Finance, which attributed the development to an “improvement in the balance of payments position, supported by policy adjustments and currency flexibility”.

Moody’s had in June last year lowered Pakistan’s outlook to negative from stable owing to erosion in foreign exchange buffers due to heightened external pressures.

Its representatives had visited Islamabad on November 27 and noted that Pakistan’s economic fundamentals, including its economic strength and susceptibility to event risks, had not materially changed even though institutional strength had increased and financial strength decreased.