S&P Terms Pakistan’s Economic Outlook ‘Stable’
The rating agency has predicted that Pakistan’s economy will continue to recover gradually as the global pandemic is progressively better contained
S&P Global Ratings has kept Pakistan’s economy stable and said it is recovering from its pre-pandemic and subsequent covid-19 shock.
The report said that ongoing reform efforts should support a continued stabilization of Pakistan’s fiscal and external metrics.
It added that multilateral and official funding will remain critical to the external debt sustainability of the country.
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S&P said that financial support and improvement in the balance-of-payments position will be sufficient for the country to meet its external obligations over the next year.
The rating agency has predicted that Pakistan’s economy will continue to recover gradually as the global pandemic is progressively better contained and domestic vaccination progresses.
It has also forecast acceleration to 4.1% on balanced private consumption and investment growth.
S&P said that around 38% depreciation against the US dollar between 2017 and 2020 contributed to a multi-year stagnation in nominal GDP per capita.
However, the report has forecast GDP per capita to rise toward $1,600 by 2024.
It also said that the rising revenues will help to gradually moderate the government’s elevated interest burden.
