Global rating agency Moody’s has released a report on Pakistan’s economy.
According to the private TV channel Geo News, according to the Moody’s report, Pakistan’s CAA rating will remain stable with the IMF program. As the government continues to implement reforms, the IMF’s financial support will also continue, and the IMF program will help the government reduce its external financing risk.
According to the report, the situation of Pakistan’s external payments will remain critical in the next 3 to 5 years.
According to Moody’s report, due to weak governance and social problems, the government could not fully implement the reforms, even if the reforms are not applied, there will be a fear of suspension of aid during the review of the program, far-reaching reforms in the new IMF program. The conditions of implementation are, under the new program, the tax net should be expanded and all exemptions should be removed, the energy tariff should be increased in time to eliminate losses in the energy sector, social tension will increase due to high taxes, expensive energy, which will increase in the implementation of reforms. It will create difficulties, social tension will increase due to high taxes, expensive energy, social tension will increase which will create difficulties in implementing reforms, even a weak coalition government will face difficulties in implementing drastic reforms.
According to the report, Pakistan needs 21 billion dollars for external payments in the current financial year and 23 billion dollars for the next financial year.
