According to its most recent report, the international rating agency Standard & Poor’s (S&P) has kept Pakistan’s long-term credit rating at Triple C Plus (CCC+). The nation’s economic stability is seriously threatened, according to the agency, by political unrest and disarray.
Pakistan’s long-term rating outlook is steady, according to the S&P assessment, which also notes that the nation’s economic circumstances have improved over the previous year. Pakistan is likely to receive funding under a new $7 billion loan package from the International Monetary Fund (IMF), which has reduced the likelihood of the country defaulting in the near future.
In addition, loan rollovers with China, Saudi Arabia, and the United Arab Emirates are possible, which will help Pakistan cover its external financial demands for the ensuing six to twelve months.
The research emphasizes that “political uncertainty can affect economic performance and policy making.”
Notwithstanding these encouraging advancements, the research emphasizes persistent difficulties, such as elevated inflation and stringent financial circumstances. S&P cautions that the current fiscal year will see the government devote more than half of its revenue to debt repayment, placing further strain on the financial system.
