WASHINGTON: Due to improving foreign-exchange reserves and the economic growth under an IMF program, the Moody’s Investors Service has upgraded Pakistan’s sovereign credit ratings for the first time since 2008.
Moody’s raised Pakistan’s foreign currency issuer and senior unsecured bond ratings to B3 from Caa1 with a stable outlook. A stalling of the International Monetary Fund program, or other bilateral support, or a more unstable political environment, will be credit negative, the company said.
In its budget announced June 5, Prime Minister Nawaz Sharif’s administration said it will increase its capital gains tax to boost revenue and raise economic growth to the highest in nine years. He’s aiming to meet goals under a $6.6 billion IMF loan deal.
