ISLAMABAD: International credit rating agency Moody’s has said that the new International Monetary Fund (IMF) program will improve funding prospects for Pakistan.
Credit rating agency Moody’s has said in its report on Pakistan’s economy that the new IMF program will provide reliable sources of financing and will improve Pakistan’s funding prospects. This includes obtaining funding from other countries and international financial institutions.
According to the report, social tension is likely to increase due to inflation in Pakistan. Higher taxes and future adjustments to energy tariffs could put pressure on reforms, while the lack of a strong electoral mandate to consistently implement difficult reforms could pose risks.
The Moody’s report further states that Pakistan’s external financing needs for the current financial year are about $21 billion, and the financial needs for the financial year 2026-27 are about $23 billion, while Pakistan’s foreign exchange reserves are $9.4 billion. Its reserves are much less than its requirements. Pakistan’s external position is still fragile. With high external financing requirements, the next three to five years will face policy challenges. Weak governance and high social tensions can affect the government’s ability to push through reforms.
