2 days ago
- Business
- Business Recorder
Credit rating upgradation: Business bodies laud Moody's decision
KARACHI: Leading business organisations in Pakistan, including the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the Businessmen Forum, and the North Karachi Association of Trade and Industry (NKATI), have welcomed Moody's decision of upgrading credit rating for Pakistan, calling it a highly positive development for the country's economic future.
The Moody's has upgraded Pakistan's credit rating from CAA2 to CAA1, citing improvements in the country's financial stability and its performance under the International Monetary Fund (IMF) programme. Business leaders believe the move will significantly enhance investor confidence and help Pakistan secure financing from global markets at lower interest rates.
Muhammad Aman Paracha, Vice President of the FPCCI, termed the upgrade as a promising sign for Pakistan's economic recovery.
'The economy is now moving in a positive direction. Business and consumer confidence is gradually improving. However, it is essential to bring the interest rate down to single digits to make credit more accessible and encourage new investments,' he said.
Paracha added that while Pakistan's rating remains in the 'C' category – far from its former 'B+' rating – the nation has successfully moved out of the critical 'F' zone.
'There was a time when Pakistan was close to bankruptcy, and our diplomatic relations with countries like China and the U.S. were strained. Today, the situation is visibly improving,' he stated.
Former FPCCI Vice President and central leader of the Businessmen Forum, Abdul Rashid Abro, also welcomed the upgrade and noted that international institutions are now showing greater confidence in Pakistan.
'Ongoing reforms are being acknowledged globally. The recent trade agreement with the United States has opened new opportunities for Pakistani exports,' he added.
Abro further stated that a combination of factors, including increased tariffs on Indian goods, the Pakistan-U.S. trade deal, and positive global financial reports, is expected to provide strong support for Pakistan's economic revival.
President of NKATI, Faisal Maiz Khan, also hailed Moody's upgrade as a milestone for Pakistan's economy.
'This report reflects the improving economic conditions of the country, and the efforts of Field Marshal Syed Asim Munir and the current government deserve appreciation,' he said.
He added that Moody's improved outlook will raise the credibility of Pakistan's letters of credit (LCs) and bank guarantees, and enhance the value of Sukuk bonds, which will help attract both local and foreign investment.
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