US State Dept appreciates Pakistan's economic reforms after Moody's outlook improvement

• Alice Wells says that with bold economic reforms, Pakistan can boost growth, attract private capital and expand exports.
• Moody's Investors Service changed on Monday Pakistan's outlook to stable from negative.

United States Principal Deputy Assistant Secretary for South and Central Asian Affairs Alice Wells has appreciated improvement in Pakistan’s outlook by credit rating agency Moody's.

“Pleased to see that Moody's has revised Pakistan’s credit outlook to stable thanks to the Finance Ministry of Pakistan's reform efforts and IMF program,” Wells said in a tweet.

Pleased to see that @MoodysInvSvc has revised Pakistan’s credit outlook to stable thanks to @FinMinistryPak’s reform efforts and IMF program. With bold economic reforms, Pakistan can boost growth, attract private capital, and expand exports. AGW

— State_SCA (@State_SCA) 3 December 2019

The diplomat further said that with bold economic reforms, Pakistan can boost growth, attract private capital, and expand exports.

Moody's Investors Service affirmed on Monday Government of Pakistan's local and foreign currency long-term issuer and senior unsecured debt ratings at B3 and changed the outlook to stable from negative.

Giving the rationale, Moody's said, “The change in outlook to stable is driven by Moody's expectations that the balance of payments dynamics will continue to improve, supported by policy adjustments and currency flexibility.”

Talking about Pakistan, Moody's said that such developments reduce external vulnerability risks, although foreign exchange reserve buffers remain low and will take time to rebuild.