Moody’s Investors Service – one of the three global credit rating agencies – has changed Pakistan’s credit rating outlook to stable from negative, signalling further improvement in foreign currency inflows into the country.
The announcement pushed Pakistan’s stock market above 40,000 points in intraday trade after a gap of 10 months. The Pakistan Stock Exchange’s (PSX) benchmark KSE 100 Index was up 838 points to 40,126 points at 3:19pm in intra-day trade on Monday.
Moody’s also affirmed the government of Pakistan’s local and foreign currency long-term issuer and senior unsecured debt ratings at B3.
“The change in outlook to stable is driven by Moody’s expectations that the balance of payments dynamics will continue to improve, supported by policy adjustments and currency flexibility,” read a Moody’s report released on Monday.
“Such developments reduce external vulnerability risks, although foreign exchange reserve buffers remain low and will take time to rebuild.”