ISLAMABAD – With Pakistan’s gloomy economic outlook, the global rating agency Moody’s Investors Service predicted high risk around Islamabad’s ability to secure required funds.
Moody’s issued a noted as Pakistan failed to failed to unlock $1.1bn in crucial funds from International Monetary Fund aimed at preventing the cash strapped nation to avert debt default.
A statement issued by top agency said “While the IMF noted that considerable progress was made during the visit on policy measures to address domestic and external imbalances, there is no certainty yet on whether, and if so when, IMF financing will be forthcoming.”
It mentioned that the country’s external position is under major stress, amid extended delays in securing official sector financing, which forced country’s foreign exchange reserves to nosedive.
Moody’s termed the funds crucial to alleviate country’s liquidity stresses. It mentioned revenue-raising measures as top actions required by US based lender before releasing the much needed funds.
It however mentioned that social and political risks compound the government’s difficulty in implementing reforms.
IMF issues statement after concluding 10-day talks with Pakistani officials
Last year, the rating agency cut Pakistan’s sovereign credit rating by one notch to Caa1 from B3, in wake of increased government liquidity and external vulnerability risks after catastrophic floods.
