KARACHI: Moody’s Investors Service has changed Pakistan’s credit rating outlook to stable from negative following the International Monetary Fund IMF bailout program that stabilized south Asian country’s economy.
Moody’s had downgraded Pakistan’s ratings outlook to negative in June 2018, citing soaring external vulnerability risk due to depleting foreign exchange reserves.
The rating agency has affirmed 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.
Rationale for outlook change are narrowing current account deficits, in combination with enhancements to the policy framework including currency flexibility, lower external vulnerability risks in Pakistan. However, foreign exchange reserve adequacy will take time to rebuild, Moody’s said in a statement on Monday.
“The upgradation of outlook to stable is affirmation of government’s success in stabilizing the country’s economy and laying a firm foundation for robust long term growth,” Dr. Abdul Hafeez Shaikh, Pakistan’s de facto Finance Minister, tweeted after Moody’s announcement.
In Pakistan such upgrading and downgrading of ratings and economic indicators are also used for political points scoring to large extent by political rivals. On Monday after the Moody’s announcement Asad Umar, federal Minister of planning, took to twitter to take the credit of the rating updgration.
“After 5 years of PML-N govt on June 20, 2018 Moody’s downgraded Pak outlook from stable to negative. This was 2 months BEFORE PTI formed govt. After 15 months of PTI govt Moody’s upgrades Pak from negative to stable. Now you decide who destroyed Pak economy & who is rebuilding it,” Umar tweeted.
Pakistan posted current account surplus in October for the first time in four years after $6 billion IMF bailout program. The country has increased key interest rates to more than double and devalued Pak rupee around 50 percent during last two years.
Moody’s says the fiscal strength has weakened with higher debt levels largely as a result of currency depreciation, ongoing fiscal reforms, including through the country’s (IMF) program, will mitigate risks related to debt sustainability and government liquidity.
The rating agency expects Pakistan’s current account deficit to continue narrowing in the current and next fiscal year, averaging around 2.2% of GDP, from more than 6% in fiscal 2018 and around 5% in fiscal 2019.
Under Moody’s baseline assumptions, subdued import growth will likely remain the main driver of narrowing current account deficits.
The country’s current account deficit has narrowed by 73.5 percent during the July-October of current fiscal year FY20 mainly due to declining imports, according to ministry of Finance.
Moody’s sees the possibility of monetary conditions easing when inflation gradually declines toward the end of the current fiscal year.
The rating affirmation reflects Pakistan’s relatively large economy and robust long-term growth potential, coupled with ongoing institutional enhancements that raise policy credibility and effectiveness, albeit from a low starting point.
“These credit strengths are balanced against structural constraints to economic and export competitiveness, the government’s low revenue generation capacity that weakens debt affordability, fiscal strength that will remain weak over the foreseeable future, as well as political and still-material external vulnerability risks,” the statement added.
On the fiscal side, Pakistan’s metrics have weakened recently, with wider fiscal deficits and an increase in government debt burden largely as a result of currency depreciation over the course of fiscal 2019. However, Moody’s expects ongoing fiscal reforms, anchored by the IMF program and technical assistance from other development partners, to contribute to a gradual narrowing of fiscal deficits. The reforms would also mitigate debt sustainability and government liquidity risks, according to the statement.
Moody’s expects the government’s fiscal deficit to remain relatively wide at around 8.6% of GDP in fiscal 2020, compared to 8.9% in fiscal 2019, before narrowing to an average of around 7% over fiscal 2021-23. High interest payments owing to policy rate hikes will continue to weigh on government finances and significantly constrain fiscal flexibility, the statement added.
Pakistan stocks exchange’s key index KSE-100 has surged by 39 percent since a low in August that makes it the top global performer in the world in last four months, according to the date shared by ministry of finance.
Moody’s upgrades Pakistan’s credit rating outlook to stable
Moody’s upgrades Pakistan’s credit rating outlook to stable
- Pakistan's ratings outlook was downgraded to negative in June 2018
- Pakistan posted current account surplus in October for the first time in four years after $6 billion IMF bailout
Pakistan crush England in second Test to set up series decider
- Spinner Noman Ali grabbed 8-46, Sajid Khan took 2-93 as the pair wrapped up England’s second innings for 144
- It was Pakistan’s first home win since Feb. 2021 and came after they were thumped by an innings in the first Test
MULTAN: Spinner Noman Ali took eight wickets as Pakistan crushed England by 152 runs in the second Test to level the series 1-1 on Friday in Multan.
Noman grabbed 8-46 and Sajid Khan took 2-93 as the pair wrapped up England’s second innings for 144 after the visitors were set a daunting target of 297.
It was Pakistan’s first home win since February 2021 and came after they were thumped by an innings in the first Test, also in Multan.
The third and final Test starts in Rawalpindi from October 24.
Noman finished with a match haul of 11-147 while Sajid had figures of 9-204, only the second time in Pakistan’s history that two bowlers took all 20 wickets in a Test.
Pakistan’s last Test win at home came against South Africa in Rawalpindi more than three years ago. It was followed by 11 home Tests without a win.
This also becomes Shan Masood’s first win as skipper after getting the job last year, including 3-0 and 2-0 whitewashes at the hands of Australia and Bangladesh.
Pakistan’s ploy of dropping ace batsman Babar Azam in one of four changes after the first Test defeat and playing on a reused pitch with three spinners paid off handsomely.
Resuming at 36-2 and facing a tough task on a pitch offering sharp spin, England managed to add just 108 runs before folding.
In just the second over of the day Sajid removed Ollie Pope with a sharp turning delivery and caught the miscued drive off his own bowling. Pope made 22.
Noman then trapped Joe Root leg-before for 18 and Harry Brook for 16 to leave England facing defeat at 78-5.
Brook smashed an epic 317 and Root a brilliant 262 — eclipsing Alastair Cook’s England Test run record — in the first Test, and their dismissals signalled England’s doom was approaching.
Noman’s fourth wicket came in the form of Jamie Smith whose uppish slog sweep was held by Masood at mid-on. Smith scored six.
Skipper Ben Stokes and Brydon Carse fought hard to take the total to 125 when Stokes was stumped in a comical manner, jumping out of the crease to loft Noman but missing the ball as his bat flew out of his hands.
Noman wrapped up the match with the wickets of Carse (27), Jack Leach (one) and Shoaib Bashir (nought), improving his previous best of 7-70 against Sri Lanka in Colombo last year.
Third batch of 26 Palestinian students arrives in Pakistan to resume medical studies
- Islamabad announced in July that the Pakistan Medical and Dental Council (PMDC) will provide scholarships to more than 100 Palestinian students
- These Palestinian students will return after completing their medical education in Pakistan to serve people at home, a Pakistani health official says
ISLAMABAD: A third batch of 26 Palestinian students has arrived in the Pakistani capital of Islamabad to continue their studies in the fields of medicine and dentistry, the Pakistani health ministry said on Friday.
Pakistan’s foreign ministry announced in July that the Pakistan Medical and Dental Council (PMDC) will provide scholarships to over 100 Palestinian students so that they can continue their studies in Pakistan.
The initiative, which came amid Israel’s war on Palestine, is a collaboration between Doctors of Rehman, Global Relief Trust and a leading Pakistani non-governmental organization, Al-Khidmat Foundation.
Pakistan prime minister’s coordinator on health, Dr. Mukhtar Ahmed Bharath, warmly welcomed the Palestinian students upon arrival at the Islamabad airport, according to the Pakistani health ministry.
“Prime Minister Muhammad Shehbaz Sharif had offered Palestinian medical students to continue their studies in Pakistan in view of the current situation in Gaza,” Dr. Bharath was quoted as saying by the ministry.
“[They] will continue their medical and dental education in various medical institutions of Pakistan.”
More than 42,000 Palestinians have so far been killed in Israel’s war on Gaza, according to the Palestinian health authorities. The war began after Hamas attacked Israel on October 7, 2023, killing nearly 1,200 and capturing around 200 others.
“All necessary steps will be taken to provide medical facilities to Palestinian students,” Dr. Bharath said. “[Pakistan] stands with the Palestinian students in this difficult time.”
These Palestinian students would return after completing their medical education in Pakistan to serve people at home, he added.
More than 90 Palestinian students arrived in Pakistan earlier this week via two separate flights to continue their medical studies in the country.
Pakistan does not recognize nor have diplomatic relations with Israel and calls for an independent Palestinian state based on “internationally agreed parameters” and the pre-1967 borders with Al-Quds Al-Sharif as its capital.
Since the beginning of Israel’s war on Gaza, Pakistan has repeatedly raised the issue at the United Nations, the Organization of Islamic Cooperation (OIC) and other multilateral platforms and demanded international powers and bodies stop Israeli military actions in Gaza.
The South Asian country has also dispatched several aid consignments for the Palestinians.
India foreign minister’s Pakistan visit a ‘good beginning’, Nawaz Sharif says
- Indian Foreign Minister Subrahmanyam Jaishankar was in Pakistan for a meeting of the Shanghai Cooperation Organization
- Jaishankar and his counterpart Ishaq Dar had an ‘informal interaction,’ an official in Pakistani foreign ministry said on Thursday
MUMBAI: The visit of India’s foreign minister to Pakistan earlier this week was a “good beginning” that could lead to a thaw in relations between the two rivals, former Pakistan Prime Minister Nawaz Sharif was quoted as saying by Indian media on Friday.
Indian Foreign Minister Subrahmanyam Jaishankar was in Pakistan on Tuesday and Wednesday for a meeting of governments of the Shanghai Cooperation Organization, with the capital city under tight lockdown.
“This is how talks move forward. Talks should not stop,” Sharif, the president of the ruling Pakistan Muslim League — Nawaz (PML-N), and the brother of Prime Minister Shehbaz Sharif, told a group of visiting Indian journalists, the Indian Express newspaper reported.
Jaishankar was among nearly a dozen leaders participating in the gathering in Islamabad, nearly a decade since an Indian foreign minister has visited amid frosty relations between the two nuclear powers.
Jaishankar and his counterpart Ishaq Dar had an “informal interaction,” an official in Pakistani foreign ministry said on Thursday, but New Delhi denied that any sort of meeting had taken place.
“We had made it very clear that this particular visit is for SCO head of government meeting. Other than that, there were some pleasantries exchanged on the sidelines of the meeting,” Indian foreign ministry spokesperson Randhir Jaiswal said on Thursday.
“We have lost the last 75 years and it is important we don’t lose the next 75 years,” Sharif was quoted as saying in the Times of India newspaper.
Pakistan’s first multi-mission communication satellite becomes operational
- PAKSAT MM1 to aid in South Asian nation’s space and digital development
- The satellite will usher in digital era by providing Internet to remote areas
ISLAMABAD: Pakistan’s first multi-mission communication satellite, PAKSAT MM1, is now fully operational, state media reported on Thursday, describing the move as a significant milestone in the country’s space and digital development.
In May, Pakistan launched the PAKSAT MM1 with Chinese assistance into space from China’s Xichang Satellite Launch Center, in a ceremony broadcast live by the Pakistan Space and Upper Atmosphere Research Commission (SUPARCO), the country’s national space agency.
The satellite has been conceived keeping in view the growing needs of the South Asian country in the broad spectrum of communication and connectivity.
“The success of PAKSAT-MM1 will transform Pakistan’s communication infrastructure, which will benefit various IT sectors,” the Radio Pakistan broadcaster reported.
“The satellite will provide services such as television broadcasting, community Internet, and tele-education to promote local industries.”
Pakistan’s ranking has improved by 14 points in the United Nations E-Governance Development Index — a comprehensive assessment tool that evaluates the digital government landscape across all UN member states — according to the state broadcaster.
The country now stands at 136 in overall ranking which was at 150 in 2022.
“This satellite will also increase Internet connectivity in remote areas which will further the government’s vision of Digital Pakistan,” the report read.
UNESCO adopts Pakistan-led resolution on countering disinformation globally
- The development comes amid student protests in Pakistan’s most populous Punjab province over reports of a rape on a women’s college campus
- Authorities say no victim has come forward and blame online misinformation for unrest, but the protests have since spread to other cities in Punjab
ISLAMABAD: The United Nations Educational, Scientific and Cultural Organization (UNESCO) has adopted a Pakistan-led resolution on countering disinformation, the Pakistani embassy in France said on Thursday.
The resolution titled, “Countering Disinformation for the Promotion and Protection of Freedom of Expression and Access to Information,” was co-sponsored by more than 50 member states and was unanimously adopted at the 220th session of the UNESCO executive board in Paris.
Pakistan took this initiative against the backdrop of proliferation and intensification of disinformation, misinformation and hate speech around the world, according to the Pakistani embassy in France.
“Disinformation is one of the most pressing challenges of our time, which is exacerbated by the rapid evolution of digital platforms and communication technologies,” it said in a statement.
“This resolution is the first of its kind at UNESCO specifically focusing on countering disinformation, misinformation and hate speech through the platform of UNESCO building on UNESCO’s activities and related decisions adopted by the UN General Assembly and the Human Rights Council where Pakistan has also been in the lead.”
Pakistan’s ambassador and permanent delegate, Asim Iftikhar Ahmad, thanked all member states for their invaluable inputs and support leading to consensus adoption of the text that put UNESCO at the center of a multi-dimensional and multi-stakeholder approach to counter disinformation, misinformation and hate speech for effective promotion and protection of freedom of expression and access to information as the lead UN agency mandated in the field.
Speaking on the occasion, delegates said the increasing threat posed by disinformation was a shared concern that needed to be addressed through close coordination and collective efforts of member states and all stakeholders, according to the embassy.
An outcome of broad-based and extensive consultations, the resolution called on the UNESCO director-general to provide an update on the initiatives undertaken by UN agency to counter disinformation on digital platforms and to present a report on how to make UNESCO’s role more effective in countering disinformation, misinformation and hate speech.
The executive board is one of the constitutional governing organs of UNESCO entrusted with the responsibility of preparing the agenda of the general conference and examining the program of work of UNESCO and its budget. Pakistan is currently vice president from the Asia-Pacific at the board.
The development comes amid widespread student protests in Pakistan’s most populous Punjab province over reports of a rape on a women’s college campus in Lahore last week.
The police, college and provincial government have said that no victim has come forward and blamed online misinformation for the unrest, but the protests have since spread to other cities in the province.
