MOODY’S Investors Service – one of the world’s top three credit rating agencies – on Saturday reaffirmed Pakistan’s stable outlook. After concluding its three-month long consideration, the agency maintained country’s B3 credit rating. Moody’s also expects Pakistan’s economic growth to be positive in fiscal 2021 from a recession in fiscal 2020, but still low at around 1-2%.
It goes to credit of present government for substantially reducing its current account deficit while its policy of securing lives and livelihoods in current times of epidemic has proved to be successful up till now. Deferment of loans from G-20 countries as well as fresh financing worth billions of dollars from the IMF, World Bank, Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB) and China since the breakout of Coronavirus has helped the country maintain reasonable foreign exchange reserves. Indeed these are extraordinary times for Pakistan as for any other country and it will have to move forward cautiously in the days ahead to resume economic activities while avoiding spike in Coronavirus cases. It was satisfying to hear Prime Minister Imran Khan who, while laying foundation stone of Ravi city project the other day, stated that the country is on the tipping point to be taken forward on path of progress and development. Indeed mega projects such as Ravi city at these difficult times are very important to revive economic activities in the country. Incentives given by the government to construction sector, one could anticipate an increased economic activity providing immense job opportunities to the people. At the same time, there is also need to maintain focus on increasing and diversifying country’s exports by supporting industrial and agriculture sectors, as this is the key to free the country from debt trap.
