Islamabad: International credit rating agency Moody’s has issued a statement on the $3 billion agreement between Pakistan and the IMF.
Moody’s says that the standby agreement with the IMF will slightly improve Pakistan’s financial capacity, but the IMF financing will pave the way for Pakistan to obtain funding.
Moody’s says that it cannot be said with certainty that Pakistan will get the $3 billion IMF funding, Pakistan will have to make reforms and increase its income for long-term stability.
According to Moody’s, Pakistan’s economic activities will continue to be affected in the near future, high interest rates and inflation and government spending will continue to affect investment, Pakistan’s external debt payments will also remain high.
It should be noted that on June 30, a staff level agreement has been reached between Pakistan and the IMF, which is a $3 billion standby arrangement agreement.
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