S&P: RATINGS ON PAKISTAN AFFIRMED AT ‘B-/B’ WITH STABLE OUTLOOK – RTRS
- We believe the Pakistan government’s reform efforts and IMF lending program will help contain external liquidity risks and gradually strengthen the country’s fiscal and economic profiles.
- However, Pakistan has significant security risks, weak institutional and governance effectiveness, low external liquidity, low per capita income, a weak fiscal profile, high public debt, and a lack of monetary flexibility.
- We are affirming our ‘B-‘ long-term and ‘B’ short-term sovereign credit ratings on Pakistan.
- The stable outlook on the long-term rating balances the potential benefits of the government’s reform efforts and the IMF lending program against vulnerabilities from external liquidity risk and domestic and external security risks.