Moody’s—a US-based business and financial services company—has upgraded the credit ranking outlook of Pakistan to ‘stable’ from ‘negative’ ahead of the launch of Eurobond and Sukuk worth around 2 billion US dollars in the world markets.
According to the report issued by Moody’s, the change in the outlook to stable is driven by Moody’s expectations that the balance of payment dynamics would continue to improve support by the policy adjustments and currency flexibility.
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On this development, the experts said that the improvement in the outlook is highly expected to revive the confidence of the foreign investors in Pakistan, captivating them to invest significant amounts in the several sectors of the economy like manufacturing, agriculture and exports, and the portfolio investment in the stocks and debt markets.
It is pertinent to mention here that the American rating agency had revised Pakistan’s outlook upwards after a gap of as many as 18 months. The agency had earlier downgraded the outlook to negative in June 2018.
The Moody’s announcement to change the outlook status of Pakistan pushed the stock market of the country above 40,000 points level on Monday after a gap of 10 months. It is worth mentioning here that the benchmark of the Pakistan Stock Exchange (PSX) KSE 100 Index surged 2.08%, or 836.57 points, to 40,124.22 points.