Karachi: Global credit rating agency Moody’s has upgraded Pakistan’s credit rating from CAA2 to CAA1 and changed the country’s economic outlook from positive to stable. According to experts, this move can make Pakistan more attractive to international investors and increase its chances of re-entering the global financial market.
Moody’s has said that further increase in Pakistan’s foreign exchange reserves is possible, but cooperation from international partners will be necessary for this. According to sources in the Ministry of Finance, the improvement in the credit rating will create new opportunities for foreign direct investment in the country and the terms of international loans will also be easier, while the risk premium of debt is expected to decrease.
Economists say that this move will make it possible for Pakistan to re-enter the global bond market. There are plans to issue panda bonds in China this year and dollar and euro bonds next year, which will further strengthen investor confidence and strengthen the country’s financial stability.
According to experts, this progress is evidence that Pakistan’s economic reforms are gaining positive recognition internationally, and global institutions are increasing their confidence in the country’s financial policies, which will open new doors for investment and development in the future.