KARACHI – In another blow to the already shattered economy, Pakistan’s foreign exchange reserves have fallen below $8 billion.
On Thursday, Moody’s Investors Service downgraded Pakistan’s local and foreign currency issuer and senior unsecured debt ratings to Caa1 from B3.
Moody’s also downgraded the rating for the senior unsecured MTN programme to (P) Caa1 from (P)B3. The outlook remains negative.
Moody’s said the decision to downgrade the ratings to Caa1 is driven by increased government liquidity and external vulnerability risks and higher debt sustainability risks, in the aftermath of devastating floods that hit the country in June 2022 and the ensuing months.
According to the State Bank of Pakistan (SBP), Pakistan’s foreign exchange reserves decreased by $173 million in the week ending September 30.
