PM Shehbaz hails Moody’s rating upgrade amid cooling inflation

Prime Minister Shehbaz Sharif on Sunday expressed his satisfaction with the recent ease in the inflation rate, noting that the government’s ongoing economic reforms are yielding positive results.

In a recent statement, PM Shehbaz highlighted that the recent upgrade in Pakistan’s credit rating by Moody’s was a clear acknowledgment of the country’s improving economic indicators. He said that international institutions are recognising the progress Pakistan is making.

Moody’s Ratings recently upgraded Pakistan’s local and foreign currency issuer and senior unsecured debt ratings from Caa3 to Caa2. This upgrade reflects slightly better macroeconomic conditions, alongside improved government liquidity and external positions, which, although still weak, have shown improvement. According to Moody’s, Pakistan’s default risk has now decreased.

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This development follows another upgrade in July when Fitch Ratings pushed Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) from ‘CCC’ to ‘CCC+’.

The Prime Minister expressed satisfaction with the Consumer Price Index (CPI) easing to 11 per cent in July, and he anticipates that it will decline further in August. He reiterated the government’s commitment to pursuing economic reforms, including a right-sizing policy, which he is personally overseeing to ensure rapid implementation.

PM Shehbaz expressed confidence that the reforms would soon have a noticeable positive impact on the country’s economy. He reassured the public that the government is fully aware of the challenges faced by the people and is working to address them.