Moody‘s rating agency has said that potential lock downs and shocks are still possible for the Pakistan economy. Moody’s said that if lockdowns or shocks to external demand happen, Pakistan’s rating of ‘B3 stable’ come under considerable pressure.
Moody’s said, in its latest report, that economies with relatively weak fiscal profiles, including India, Indonesia (Baa2 stable), Malaysia (A3 stable) and Pakistan, ‘will be compelled to balance fiscal consolidation objectives with rising social demands to ameliorate structural problems such as weak governance, unequal access to healthcare or income inequality. These governments will face constraints on their ability to stimulate domestic demand or support companies as new pandemic-related disruptions to economic activity emerge’.
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