MODDY upgrades Pakistan Credit Rating: Recently, the Pakistan Army Chief had visited America twice and the effect of both countries getting closer is now visible. American agency Moody’s upgraded Pakistan’s credit rating from CAA2 to CAA1. He has argued that now Pakistan’s external financial situation has improved before. After this rating of Moodyes, Pakistan Prime Minister Shahbaz Sharif said that this is an indication that economic policies are going in the right direction.

What will be the advantage of changing ratings?

Actually, CAA2 is a very weak category, in which Pakistan was first placed. Now Pakistan’s rating has been improved, which shows that its economic condition has improved.

Due to the better rating of any country, there is a direct impact on trade and investment with that country. After improving Pakistan’s ratings, the ability and conditions to take loans for it may be better. It is believed that Pakistan’s central bank can also further change its policy rates. If this happens, the 11% rate at this time can be cut. This will have a positive impact on the economy there.

What is the logic of Moody’s?

After upgrading Pakistan’s ratings, the US rating agency said that it has now increased the perspective for the Government of Pakistan to stable (stable). This not only shows Pakistan’s better economic status, but also shows progress in programs going on under IMF. After upgrading the Moody’s rating, Pakistan’s Finance Minister Mo. Aurangzeb says that on the basis of this indicator positive, now the central bank has the scope to reduce the policy rate which is currently 11 percent.

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