GoP Ability To Sustain Reform Momentum, Uncertain: Moody’s

Moody‘s said that the GoP’s ability to sustain reform momentum is uncertain. Moody’s said that this appears to be the case beyond the expiry of the IMF program in September 2022. Aspects that are expected to be affected are broadening the revenue base, commit to an immediate successor program (if required).

This was stated in Moody’s latest report, terming the IMF disbursement as a credit positive, shoring up Pakistan’s foreign exchange reserves, which have faced significant pressures in recent months amid a sharp widening in the current-account deficit as higher global oil and commodity prices contributed to a yawning goods trade deficit. Moody’s does acknowledge Pakistan’s reform progress, in its recent report saying that the IMF led reforms are being implemented.