Due to Pakistan’s sustained government program during the past five years, Moody’s has reaffirmed its credit profile as B3 Stable; the ratings agency sees CPEC as the catalyst for Pakistan’s sustained growth and relatively large economy.
Moody’s faith in Pakistan’s economy is also due to an increase in transparency and keeping inflation levels low. Pakistan has also invested heavily in infrastructure and energy projects including dams, city wide transport systems, power plants etc., as part of the China Pakistan Economic Corridor (CPEC).
Pakistan also fares better than its B rated sovereigns in terms of GDP, with a score of 5.8% growth in FY 2018 compared to their average median of 3.8% in 2017.
The report shows that the fiscal deficit will remain at 5.5% of the total GDP due to strong revenue collection in the first six months of 2018 which registered a 20% rise compared to the corresponding year and earlier periods. Based on further projects as part of CPEC, the report forecasts strong growth for the nation with more domestic and foreign investment coming in.