LONDON, Nov 18: Ratings agency Moody’s Investors Service said on Monday it had upped its outlook on Pakistan’s B3 long-term foreign currency debt to positive from stable, and affirmed the existing rating.

The agency said the move was prompted by the country’s solid economic growth, which has boosted central bank reserves.

It said that ratings are still held back by regional and domestic political uncertainties including tensions with India, of particular concern because both countries have nuclear weapons.

“Barring major shocks... the Pakistani economy should continue to grow at a pace similar to that of the last few years, although an improvement in global demand coupled with greater political stability could push growth even higher over the near term,” said the agency.

It said Pakistan would continue to need support from foreign multilateral lending, but less so than in the past.

“Substantial autonomous inflows from non-resident Pakistanis in response to the government’s tightening of financial controls, bode well for increased self-sufficiency,” Moody’s added.—Reuters