Global credit rating agency Moody’s upgraded Pakistan’s credit rating by one notch.
According to the report, Moody’s has raised the Assured and Senior Unsecured Ratings of Pakistan’s local and foreign currency loans from Caa3 to Caa2.
Pakistan’s outlook has also been upgraded from stable to positive by Moody’s. According to the report of the rating agency, the outlook for the Pakistani economy is positive.
A reduction in Pakistan’s default risk is one of the reasons for the improved rating, in addition to a slight improvement in Pakistan’s liquidity situation.
According to the report, sources of external financing have been clarified and secured by a staff-level agreement on the $7 billion bailout package from the IMF, which is likely to be approved in the next few weeks.
Pakistan’s foreign exchange reserves have almost doubled since June 2023, according to the rating agency, Pakistan’s foreign exchange reserves are below the level required to meet external financing needs.
