ISLAMABAD – World’s one of the most respected credit rating agency Moody’s has reaffirmed Pakistan’s credit profile as B3 stable.
The agency has made this reaffirmation in its latest report based on Pakistan’s strong growth performance and potential, a relatively large economy and the sustained reforms programme undertaken by the government in the last five years.
Moody’s credit analysis also highlights the greater transparency, which Pakistan has achieved in its economic field beside keeping inflationary pressure to low levels and investing heavily in the energy and infrastructure sectors under the China Pakistan Economic Corridor (CPEC).
The report says Pakistan fares better in GDP growth among its peers with 5.8 percent growth in fiscal 2018, as compared to the median 2017 growth of 3.8 percent among B rated sovereigns.
In its report, Moody’s expects fiscal deficit to remain around 5.5 percent of GDP in the fiscal year 2017-18 on the back of strong revenue collection in the first six months, which witnessed a 20 percent rise as compared to the corresponding year and earlier periods.
The report says the stable outlook reflects the country’s potential to further strengthen its growth beyond current levels with successful implementation of CPEC projects, cashing in on both foreign and domestic investments, continued robust activity of large-scale manufacturing and a rebounding agriculture sector.
According to the report, Pakistan needs to renew its focus on increasing the revenue base, investing in social sectors, improving competitiveness, reinvigorating privatization and managing debt profile astutely.