The S&P Global Rating has lowered its long-term sovereign credit rating on Pakistan to “CCC+” from “B-” and the short-term rating to “C” from “B” on weakening of external, economic and fiscal metrics.

It has been a very difficult year for the country’s economy, so when a noted global rating agency has decided to lower country’s rating, it appears to be the straw that has broken the camel’s back. In other words, this unsavoury development is the last in a series of bad things that happen to hurt country’s economy further.

It is needless to say that most of our economic woes are linked to growing political instability in which government’s extravagance and misgovernance have played a key role. Little do, however, our politicians realise that denying the existence of profound challenges can open the doors to bankruptcy.

The stalled International Monetary Fund (IMF) programme is a strong case in point. Unfortunately, sovereign default now appears to be very much in sight.

Fehmida Zaman (Karachi)

Copyright Business Recorder, 2022