Islamabad (Commerce Desk): International rating agency Moody’s has upgraded Pakistan’s sovereign credit rating from Caa1 to B3.
According to Moody’s, the main reasons for the rating upgrade include progress in the governance system, strengthening foreign exchange reserves and a reduction in the cost of domestic borrowing.
The agency also cited continued economic stability in Pakistan as a major reason for the rating upgrade. According to Moody’s, improvements in these areas will further strengthen Pakistan’s external financial position and improve fiscal indicators.
Moody’s has upgraded Pakistan’s rating by two notches over approximately 12 months.
Meanwhile, Prime Minister Shehbaz Sharif welcomed the improvement in Pakistan’s credit rating, saying that the efforts of the Deputy Prime Minister and Field Marshal to improve the economy were commendable. He said the rating upgrade reflected global confidence in the government’s economic policies and reforms.
The Prime Minister said the government had taken effective measures to stabilize the economy and improve the external sector.