As per the announcement of Moody’s Investors service and Fitch ratings, S&P Global Ratings recently revised the outlook on Pakistan’s long term ratings to negative from stable.
It’s also confirmed that it’s ‘B-‘ long-term and ‘B’ short-term sovereign credit ratings on Pakistan, as well as ‘B-‘ long-term issue rating on the country’s senior unsecured notes and Sukuk trust certificates.
The negative outlook would show the increasing risks to Pakistan’s external liquidity over the next 12 months, amid a growing difficult economic landscape, said by S&P in a statement.
Outlook could backed off to stable If Pakistan’s external position got steady and uplift from current level. Pakistan government have noticeable external liabilities and liquidity needs. Proof of improvement could be the rise in usable foreign exchange reserves, confirmed by S&P.
As per Fitch, it’s a notable risks to the implementation of the IMF programme and to carry on with the access of Pakistan to endow even after the expiry of programme in June 2023 having tough economic and political climate.
However, Pakistan’s domestic demand continues to retrieve as it it now facing a new challenge in the form of rising prices, particularly for staple goods.
The functionary government espouse several measures in order to stable its fiscal position and to be closely align with IMF programme objectives.
