S&P: Pakistan view to positive

Standard & Poor’s said it revised the outlook on the Islamic Republic of Pakistan’s long-term sovereign credit rating to positive from stable.

The agency also said it affirmed the B- long-term and B short-term sovereign credit ratings on Pakistan.

The positive outlook reflects Pakistan’s improved economic growth prospects, which are expected to further improve its budgetary position, S&P said.

The government is making significant progress in fiscal consolidation, the agency said, and Pakistan’s external financing conditions and external performance also continue to improve.

The ratings also consider vulnerabilities in Pakistan’s institutional and governance effectiveness that are partly associated with the country’s security risks, S&P added.

Other rating constraints include Pakistan’s low income, weak monetary policy framework and shortfalls in infrastructure and services that have historically been negative to its fiscal performance, the agency said.

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