Global credit rating agency Moody’s says it is concerned about Pakistan’s economy and has called the no-confidence motion against Prime Minister Imran Khan “credit negative”. It said the move could act as a hurdle in the way of a smooth reform process in Pakistan. “The no-confidence motion raises significant uncertainty over policy continuity, as well as the government’s ability to continue to implement reforms to increase productivity growth and secure external financing, including from the International Monetary Fund (IMF).” The motion comes at a time Pakistan faces surging inflation and widening current account deficits amid rising global commodity prices. A further deterioration in Pakistan’s external position, including significant widening of the current account deficit and erosion of foreign exchange reserves, would threaten the government’s external repayment capacity and heighten liquidity risks, it cautioned.
