ISLAMABAD, Aug. 28 (Xinhua) -- Moody's Ratings has upgraded Pakistan's economic outlook from stable to positive, the rating agency said in a statement on Wednesday.
Pakistan's local and foreign currency issuer and senior unsecured debt ratings have been improved to Caa2 from Caa3, the statement said.
The upgrade reflected Pakistan's improving macroeconomic conditions and moderately better government liquidity and external positions from fragile levels.
The rating agency, which downgraded the country's ranking in February last year, said that "there is now greater certainty on Pakistan's sources of external financing, following the sovereign's staff-level agreement with the International Monetary Fund (IMF) for a 37-month Extended Fund Facility (EFF) of seven billion U.S. dollars."
"We expect the IMF Board to approve the EFF in the next few weeks," it said.
Moody's said that Pakistan's foreign exchange reserves have almost doubled since June 2023, although they remain below the requirement to meet its external financing needs, and the country remains reliant on timely financing from official partners to fully meet its external debt obligations.
