PM Shehbaz Praises Inflation Drop and Moody’s Credit Rating Upgrade
ISLAMABAD: Prime Minister Shehbaz Sharif expressed satisfaction on Sunday over the recent reduction in inflation rates and Pakistan’s credit rating upgrade by Moody’s, highlighting these developments as promising signs for the country’s economic recovery.
In a statement issued by the Prime Minister’s Office, PM Shehbaz commended the Pakistan Bureau of Statistics (PBS) for its report indicating a significant decline in inflation indicators. “The Consumer Price Index showed a notable decrease in July 2024, bringing inflation down to 11%. Economic experts are predicting further reductions by September, which is a positive indicator for our economy,” the Prime Minister stated.
He emphasized the importance of Pakistan’s improved global financial standing, noting that after Fitch, the international rating agency Moody’s also upgraded the country’s credit rating. This upgrade reflects the ongoing improvement in Pakistan’s economic indicators.
“Our government is committed to implementing comprehensive economic reforms. We are actively pursuing a right-sizing policy, which I am personally overseeing to ensure its success. The economic benefits of these reforms will soon be evident to all,” the Prime Minister assured.
PM Shehbaz also highlighted major relief measures introduced by the federal and Punjab governments, particularly for electricity consumers, along with the recent reduction in petroleum product prices.
“Our administration is determined to pass on these benefits to the common man. The diligent efforts of our economic and financial team are steering the nation towards economic stability,” he added.
Acknowledging the challenges faced by the public, the Prime Minister reassured that the government is working tirelessly to alleviate these difficulties and improve the lives of the people.
Moody’s, a leading global rating agency, recently upgraded Pakistan’s local and foreign currency issuer and senior unsecured debt ratings from Caa3 to Caa2. The agency cited Pakistan’s improving macroeconomic conditions and a moderately better government liquidity and external position as reasons for the upgrade.
Moody’s also noted that Pakistan’s default risk has decreased to a level consistent with a Caa2 rating, particularly following the staff-level agreement with the International Monetary Fund (IMF) in July for a $7 billion extended fund facility (EFF).
Earlier, in February, Moody’s had maintained Pakistan’s long-term credit rating at Caa3, reflecting a higher probability of default and investment risks due to weak debt affordability. The recent upgrade signals a positive shift in the country’s economic outlook.
