Moody’s Investors Service upgraded Pakistan’s sovereign credit ratings for the first time since 2008 citing improving foreign-exchange reserves and the government’s economic overhaul under an IMF program
“With the program now at its mid-point, we consider that the government has achieved significant traction in reforms,” analyst Anushka Shah wrote in a statement on Thursday. “Continued commitment to the program would entail, amongst other goals, the government meeting deficit-reduction targets.”
Moody’s raised Pakistan’s foreign currency issuer and senior unsecured bond ratings to **B3 from CAA1 **with a stable outlook.
A stalling of the International Monetary Fund program, or other bilateral support, or a more unstable political environment, will be credit negative, the company said.
“This upgrade will get Pakistan bonds better offers at the international bond-sale” expected this year, Yawar Uz-Zaman, vice president for research at Shajar Capital Pakistan Pvt. in Karachi, said by phone. “This is a confidence booster.”
In its budget announced June 5, Prime Minister Nawaz Sharif’s administration said it will increase its capital gains tax to boost revenue and raise economic growth to the highest in nine years. He’s aiming to meet goals under a $6.6 billion IMF loan deal.
Re: Moody’s Upgrades Pak Rating as Sharif Improves Finances
One suggestion…why dont you open all these posts under 1 thread which focuses on PMLN achievements unless there is a certain achievement that requires a separate thread. dont want this forum to become mouth piece of one particular party…same message to all other party-lovers as well.
Re: Moody’s Upgrades Pak Rating as Sharif Improves Finances
Good news indeed - but you know our people ONLY FOCUS ON THE NEGATIVE.
Kuch acha ho bhi raha ho tho chalk … to neglect it and give precedence to personal feelings about parties and politicans.
Re: Moody’s Upgrades Pak Rating as Sharif Improves Finances
Its a great news indeed. And some financial guru can correct me but the credit rating is based on the lending power and we all know how many loans this govt has taken in such a brief time. Any repayment detail so far? Or it’ll be all over due on our next generations?? @Dessert bird
Re: Moody’s Upgrades Pak Rating as Sharif Improves Finances
LOL. Lets get more loans with strict conditions, waste the money to finance the fiscal deficit - the deficit which is due to non-sense projects and haraamkhori. But we will make sure that all the burden of structural adjustments and other conditions result in common man jumping the hoops.
Re: Moody’s Upgrades Pak Rating as Sharif Improves Finances
When the country is in the gutter they say there’s to much corruption and mismanagement… When its doing relatively well, they say there’s to much corruption and mismanagement.
Re: Moody’s Upgrades Pak Rating as Sharif Improves Finances
‘doing relatively well’ is the key thing. If you have ur credit card maxed out, and u keep paying minimum due amount - with interest accruing. Then you get another loan to payout ur existing loan and keep doing it. All you do is finance your current expenses with loan - and keep deferring the repayment of the loan.
Would you say you are doing ‘relatively well’ in such a scenario???
Re: Moody’s Upgrades Pak Rating as Sharif Improves Finances
Ditto! I see some positive articles about Pakistans economic indicators in various reputed international publications such as the economist and WSJ… Great news! We really need to get going with full steam on the power generation aspect though!
