PM Shehbaz lauds Pakistan's rating upgradation by Moody’s

ISLAMABAD: Prime Minister (PM) Shehbaz Sharif expressed satisfaction over the upgradation of Pakistan’s credit rating by the international rating agency Moody’s.

Presiding over a review meeting on Wednesday about the status of the nation’s economy and investment in Islamabad, PM Shehbaz said that the economy is headed for growth following stability as the government ‘prevented’ the country from going into default.

PM Shehbaz Sharif said that Moody’s upgraded Pakistan’s rating to Caa2 in recognition of the government’s ‘good’ economic policies.

The prime minister hoped that the country’s economy would continue to move forward at the same pace in a positive direction. He said that the keen interest of friendly countries to invest billions of rupees in Pakistan’s various sectors is a result of the business-friendly policies of the government.

PM Shehbaz categorically said any delay in the implementation of investment projects from friendly countries is not acceptable. He directed all ministers and relevant institutions to take steps to accelerate the pace of proposed projects.

The prime minister further highlighted the enormous investment potential in different sectors of the country, including information technology, agriculture, minerals, gemstones and energy. He said foreign investment in these sectors will not only boost exports’ volume but it will create job opportunities for the youth.

The meeting was briefed about the improvement in country’s rating by Moody’s, progress on investment agreements with friendly countries in various sectors and ongoing projects.

It was also informed about the progress on projects under the second phase of China Pakistan Economic Corridor.

PM Shehbaz directed authorities concerned to ensure transparency in all projects and their implementation on a priority basis as well.

Earlier in the day, Moody’s Investors Service has upgraded Pakistan’s long-term issuer rating from “Caa3” to “Caa2” with a stable outlook.

This upgrade follows Fitch Ratings’ decision in July to raise the country’s credit rating from “CCC” to “CCC+”.

Moody’s said that this upgrade reflects Pakistan’s improved macroeconomic conditions and moderately better government external positions from very weak levels.

“We have also upgraded the rating for the senior unsecured MTN programme to (P)Caa2 from (P)Caa3. Concurrently, the outlook for Government of Pakistan is changed to positive from stable,” read the statement.

Accordingly, Pakistan’s default risk has been reduced to a level consistent with a Caa2 rating.