Pakistan Gets a Moody’s Boost: What Comes Next?

News Desk

Rawalpindi: Rawalpindi Chamber of Commerce and Industry (RCCI) President Usman Shaukat has welcomed Moody’s decision to upgrade Pakistan’s sovereign credit rating from Caa1 to B3, describing the move as a positive indicator of improving international confidence in the country’s economic outlook.

In a statement, Shaukat said the upgrade was particularly significant amid regional instability and global economic uncertainty, including tensions involving Iran and the United States.

He said improved assessments by international credit rating agencies could strengthen investor confidence, facilitate access to international financing and create new opportunities for Pakistan’s private sector.

According to Shaukat, the upgrade reflects progress in macroeconomic stabilisation, fiscal management and Pakistan’s external position. He noted that Moody’s had identified the rise in foreign exchange reserves, lower domestic financing costs following monetary easing and improved fiscal conditions among the factors supporting the revised rating.

Pakistan’s foreign exchange reserves stood at around $17 billion by the end of July 2026, compared with approximately $14 billion a year earlier, he said.

However, the RCCI president cautioned against complacency, stressing that the rating improvement should be followed by sustained economic reforms. He called for efforts to broaden the tax base, strengthen governance, improve debt affordability and create a more favourable environment for private investment and productivity-led growth.

Shaukat expressed hope that policy consistency and continued reforms would lead to further improvements in Pakistan’s credit profile and strengthen international confidence in the country’s economic prospects.