Moody’s sees robust GDP growth potential

Published May 25, 2021
Moody's said the review did not involve a rating committee, and this publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. — AFP/File
Moody's said the review did not involve a rating committee, and this publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. — AFP/File

KARACHI: Rating agen­­cy Moody’s in its latest report said the credit profile of Pakistan (issuer rating B3) reflects the country’s “baa2” economic strength, which is underpinned by the robust long-term GDP growth potential and large scale of the economy, balanced against low per capita incomes and global competitiveness.

Its “b2” institutions and governance strength that balances still weak executive institutions and fiscal policy credibility and effectiveness against a lengthening track record of effective checks and balances and judicial independence, as well as increasing monetary and macro prudential policy effectiveness, said the agency.

The government’s “ca” fiscal strength driven by its high government debt burden and narrow revenue base which hinders debt affordability and reduces fiscal flexibility given ongoing infrastructure and social spending needs; and its “b” susceptibility to event risk driven by external vulnerability, as foreign-exchange reserve adequacy, though improving, remains low compared to peers, it added.

However, the rating agency said the review did not involve a rating committee, and this publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.

Published in Dawn, May 25th, 2021

Opinion

PML-N bad cop outfoxed
Updated 13 Jun 2021

PML-N bad cop outfoxed

The feel-good factor can cancel out some of the very negative perceptions about the PTI among low-income voters.
Sink or swim
13 Jun 2021

Sink or swim

What have schools learnt during Covid?
Decoding Digitisation
Updated 12 Jun 2021

Decoding Digitisation

The scope of information technology or digitisation continues to be discussed in a rather limited manner in mainstream discourse.

Editorial

Covid strategy
Updated 13 Jun 2021

Covid strategy

It is critical for govt to demonstrate to the public how badly health, business and education have suffered during the pandemic.
13 Jun 2021

Women in Balochistan

THE Balochistan government seems to be taking steps to improve women’s integration into society and the workforce...
13 Jun 2021

Deprived of cricket

THE federal cabinet has disallowed PTV to enter into an agreement with an Indian company for broadcast rights to...
12 Jun 2021

Feel-good budget

WE have been here before. Every time a government gets some fiscal space it immediately shifts gears to growth,...
Rep Omar’s tweet
Updated 12 Jun 2021

Rep Omar’s tweet

Over the last several decades, America has been instrumental in destabilising a number of Muslim states.
12 Jun 2021

Poor health indicators

IF the coronavirus has taught the world anything, it is that the old maxim ‘health is wealth’ is true. Though...