Moody’s upgrades Pakistan’s ratings to Caa2 citing improved macroeconomic conditions 

A sign for Moody's rating agency stands in front of the company headquarters in New York, September 18, 2012. (AFP/FILE)
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Updated 28 August 2024
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Moody’s upgrades Pakistan’s ratings to Caa2 citing improved macroeconomic conditions 

  • Ratings upgrade reflects Pakistan’s decreased default risk after $7 billion IMF bailout staff-level agreement in July
  • Despite doubling since June 2023, Pakistan’s foreign reserves remain insufficient for external financing needs, says Moody’s 

ISLAMABAD: International credit ratings agency Moody’s on Wednesday upgraded Pakistan’s ratings to Caa2 from Caa3 and changed the country’s outlook to “positive” citing improving macroeconomic conditions and better government liquidity and external position. 

The ratings upgrade reflects Pakistan’s decreased default risk after a $7 billion IMF bailout staff-level agreement in July.

However, despite doubling since June 2023, Pakistan’s foreign exchange reserves remain insufficient for its external financing needs, the agency said. 

“The upgrade to Caa2 reflects Pakistan’s improving macroeconomic conditions and moderately better government liquidity and external positions, from very weak levels,” the ratings agency said. “Accordingly, Pakistan’s default risk has reduced to a level consistent with a Caa2 rating.”

The agency said Pakistan’s Caa2 rating continues to reflect the country’s “very weak debt affordability,” saying that it drives high debt sustainability risk. Moody’s said it expects interest payments to continue absorbing about half of government revenue over the next two to three years.

“The Caa2 rating also incorporates the country’s weak governance and high political uncertainty,” it said. 

Moody’s said that sustained reform implementation, which includes revenue-raising measures, can increase the government revenue base and improve Pakistan’s debt affordability. 

It said completing IMF reviews in a timely manner would also allow Pakistan to continually unlock financing from official partners, sufficient to meet its external debt obligations and support further rebuilding of its foreign exchange reserves.

Moody’s said that while it expects Pakistan to cover its financing needs with funding from official partners, there remains “uncertainty” around the government’s ability to sustain reform implementation. 

It cautioned that a weak coalition government formed after the February election this year may not be able to take revenue-raising measures without stoking social tensions. 

“Slippages in reform implementation or results could lead to delays in or withdrawal of financing support from official partners,” Moody’s warned. 


KSrelief distributes food parcels to people in need in Mali, Pakistan

Updated 4 sec ago
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KSrelief distributes food parcels to people in need in Mali, Pakistan

  • Some 500 parcels distributed in Koulikoro region of Mali
  • In Pakistan, 1,450 parcels given out in Sindh, KP provinces

RIYADH: Saudi aid agency KSrelief has provided food aid to people in need in Mali and Pakistan, reported the Saudi Press Agency.

This handout photo, taken and released by Saudi Press Agency on January 21, 2025, shows distribution of aid by King Salman Humanitarian Aid and Relief Center (KSrelief) in Koulikoro region of Mali. (SPA)

Some 500 parcels were distributed in the Koulikoro region of Mali, benefiting vulnerable groups including displaced people and those with disabilities as part of this year’s Food Security Support Project in the country.

This handout photo, taken and released by Saudi Press Agency on January 21, 2025, shows Malian women gesture during distribution of aid by King Salman Humanitarian Aid and Relief Center (KSrelief) in Koulikoro region of Mali. (SPA)

Meanwhile, in Pakistan, a further 1,450 food parcels were given out in the Dadu and Sanghar districts in Sindh province and the Torghar district of Khyber Pakhtunkhwa province.


Finishing touches being put on Pakistan stadiums ahead of ICC Champions Trophy

Updated 51 min 32 sec ago
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Finishing touches being put on Pakistan stadiums ahead of ICC Champions Trophy

  • Eight-team 50-overs tournament will be first global competition held in Pakistan in 28 years
  • India will play all their matches in Dubai due to political tensions with the northern neighbor

LAHORE: The Pakistan Cricket Board (PCB) this week allayed fears about the preparedness of the venues for this year’s Champions Trophy as they welcomed media for a tour of Lahore’s Qaddafi Stadium on Monday.

Arshad Khan, manager of National Bank Stadium, addresses media persons regarding the progress of the renovation work ahead of the ICC Champions Trophy 2025 tournament at the National Bank Stadium in Karachi on January 20, 2025. (REUTERS)

The eight-team 50-overs tournament will be the first global competition to be held in Pakistan in 28 years.
India, however, will play all their matches in Dubai due to political tensions with their Northern neighbors.

Laborers work during a media tour, organized by the Pakistan Cricket Board (PCB), to showcase the progress of the renovation work ahead of the ICC Champions Trophy 2025 tournament at the National Bank Stadium in Karachi on January 20, 2025. (REUTERS)

Stadiums in Lahore, Karachi and Rawalpindi are being upgraded for the tournament whose success could invite more global tournaments to a country, which was deemed unsafe to tour after a 2009 attack on the visiting Sri Lankan cricketers.

Journalists attend a media tour organized by the Pakistan Cricket Board (PCB), to showcase the progress of the renovation work ahead of the ICC Champions Trophy 2025 tournament at the National Bank Stadium in Karachi on January 20, 2025. (REUTERS)

“We are in the finishing phase. Our work is almost complete, the finishing touches remain. We will complete it by the end of this month,” PCB director of infrastructure, Qazi Jawad, told Reuters in Lahore.
The stadium’s capacity has been increased to accommodate 35,000 fans while new hospitality areas have also been constructed.

Laborers work during a media tour, organized by the Pakistan Cricket Board (PCB), to showcase the progress of the renovation work ahead of the ICC Champions Trophy 2025 tournament at the Qaddafi Stadium in Lahore on January 20, 2025. (REUTERS)

Lahore and Karachi will host a tri-nation series involving New Zealand and South Africa next month to prove their readiness for the Champions Trophy beginning on February 19.

Laborers work during a media tour, organized by the Pakistan Cricket Board (PCB), to showcase the progress of the renovation work ahead of the ICC Champions Trophy 2025 tournament at the Qaddafi Stadium in Lahore on January 20, 2025. (REUTERS)

 


Pakistan air force contingent lands in Saudi Arabia for aerial combat exercise

Updated 21 January 2025
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Pakistan air force contingent lands in Saudi Arabia for aerial combat exercise

  • Saudi Arabia annually hosts Spears of Victory exercise, with last year’s activity having involved more than 60 aircraft from nine nations
  • This year’s exercise will include participation from Saudi Arabia, Pakistan, Bahrain, France, Greece, Qatar, UAE, UK and US

ISLAMABAD: A Pakistan Air Force contingent comprising JF-17 Thunder Block-III fighter jets and dedicated air and ground crew has landed in Saudi Arabia to participate in the multinational aerial combat exercise, “Spears of Victory-2025,” the Pakistan army said in a statement on Tuesday.
Saudi Arabia annually hosts the Spears of Victory exercise, with last year’s activity having involved more than 60 aircraft from nine nations. This year’s exercise will include participation of fighter jets and combat support elements from Saudi Arabia, Pakistan, Bahrain, France, Greece, Qatar, UAE, UK and the US. 
“For this International deployment, PAF fighters flew nonstop from home base in Pakistan to Saudi Arabia, carrying out inflight Air-to-Air refueling, showcasing long range employment capabilities of JF-17 Block-III Aircraft,” the Pakistan army’s media wing said. 
During the exercise, PAF pilots flying AESA & Extended Range BVR Equipped JF-17 Thunder jets will be pitched against participating air forces equipped with a wide variety of sophisticated combat aircraft. 
Royal Saudi Air Force is holding the fifth cycle of the exercise, “which provides an excellent opportunity to bolster interoperability within the participating Air Forces in the backdrop of technological advancement, increasing complexity in Airpower application & shared aerial defense challenges,” the army statement said. 
“Participation of Pakistan Air Force contingent in the exercise not only highlights PAF’s commitment to regional & international cooperation but also underscores its capabilities and prowess to operate in diverse and challenging environments among contemporary airforces.”


Outgoing US president Biden turns down clemency request for Pakistani neuroscientist

Updated 21 January 2025
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Outgoing US president Biden turns down clemency request for Pakistani neuroscientist

  • Siddiqui is serving 86-year jail sentence after being convicted of attempting to shoot group of FBI agents, US soldiers and interpreters
  • US officials say incident took place as FBI agents, soldiers were about to interrogate Siddiqui at Afghan police compound in Ghazni in 2008

KARACHI: The sister of Dr. Aafia Siddiqui, a Pakistani neuroscientist imprisoned in the US, on Tuesday called on supporters not to lose hope after outgoing US President Joe Biden rejected a petition seeking clemency for the jailed academic.
Siddiqui, a US-trained scientist who denies any wrongdoing, was convicted in 2010 and given a 86-year prison sentence for shooting at FBI agents and soldiers after her arrest in Afghanistan. She was arrested in July 2008 by Afghan police, who said she was carrying two pounds (900 grams) of sodium cyanide and crumpled notes referring to mass casualty attacks and New York landmarks.
The day after her arrest, according to the indictment, Siddiqui grabbed an M-4 rifle in her interrogation room and started shooting while yelling “death to America,” the trial jury heard. No US agents or soldiers were hit, but Siddiqui was shot and wounded in response, according to US prosecutors. She was subsequently convicted by a New York federal jury of attempted murder, armed assault and other charges. Siddiqui was never charged with links to terrorism.
Siddiqui’s family says she was visiting Pakistan in 2003 when she was abducted with her three children by Pakistani intelligence officials and handed to the Central Intelligence Agency (CIA), which took her to Afghanistan. Pakistan’s intelligence agencies deny the claims.
“You must all by now have heard the news that our [mercy] petition was denied at the very last moment,” Dr. Fowzia Siddiqui, who has been lobbying for years for her sister’s release, said in a video message. 
The rejection comes in response to a 76,500-word dossier submitted by Siddiqui’s lawyer, Clive Stafford Smith, urging Biden to grant her clemency before the end of his term.
“We will go onto Plan B and Plan D but not lose hope. Please, I have not lost hope, so all I am asking you is to please stay steadfast, stay with me, join us for Plan B and please continue the support,” Fowzia added.
In October 2024, Pakistan’s Prime Minister Shehbaz Sharif also wrote a letter to Biden, calling for Dr. Siddiqui’s release. The letter highlighted concerns about her treatment in prison and warned that her deteriorating physical and mental health could lead to self-harm.
Freeing Siddiqui or winning her repatriation to Pakistan has at times been a popular cause in her homeland, where her trial was seen as unfair.


Eight Chinese Hangor submarines to enter Pakistan fleet ‘very soon’— naval chief

Updated 21 January 2025
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Eight Chinese Hangor submarines to enter Pakistan fleet ‘very soon’— naval chief

  • Joint construction of eight Hangor-class submarines is key project in China-Pakistan naval cooperation
  • Pakistan signed agreement with China to procure eight Hangor-class conventional submarines in 2015

ISLAMABAD: Chief of the Pakistan Naval Staff, Admiral Naveed Ashraf, has said this month eight Hangor-class submarines built for Pakistan by China would be included in the South Asian country’s fleet “very soon.”
The joint construction of eight Hangor-class submarines is a key project in China-Pakistan naval cooperation. This type of submarine is equipped with the latest weapons and sensors and with an air independent propulsion (AIP) system on board, the submarine has significantly enhanced submerged endurance capabilities.
Pakistan signed a contract with China to procure eight Hangor-class conventional submarines in 2015, with the first four to be constructed by China and the other four to be assembled by Pakistan under a technology transfer agreement. The plan was that Pakistan will obtain the eight advanced submarines between 2022 and 2028. In December 2021, the fifth Hangor-class conventional submarine, also the first one built in Pakistan, officially received a steel cutting ceremony. 
In an interview to China’s Global Times newspaper this month, Ashraf said the Hangor-class submarines would “significantly enhance” Pakistan’s naval capabilities, improving stealth, maneuverability and firepower.
“The project is proceeding as per the timeline. We expect that these submarines will join the Pakistan Navy fleet very soon,” Ashraf said.
The initial Hangor delivery timetable would have seen the four Chinese-built submarines delivered by 2023. But there have been widespread reports that Germany had refused to approve export licenses for its MTU 396 diesel engine, which the submarine was designed to use. The German government had also declined to grant export licenses for its engines in regard to Thailand’s order of the S-26T, a variant of the Chinese Type 039B submarine. The Thai deal eventually fell through.
Neither Germany nor Pakistan have confirmed whether export clearance was ultimately approved or denied.
When Pakistan’s Ministry of Defense (MoD) ordered the eight submarines from China in 2015 at an approximate cost of $4–5 billion, it was the largest arms export contract in China’s military history.