S&P Global lowers Pakistan’s long-term sovereign credit rating

[ghazi52]

S&P Global lowers Pakistan’s long-term sovereign credit rating​

Reuters
December 22, 2022

Global ratings agency S&P Global on Thursday cut Pakistan’s long-term sovereign credit rating by one notch to “CCC+” from “B” to reflect a continued weakening of the country’s external, fiscal and economic metrics.

Pakistan’s already low foreign exchange reserves will remain under pressure through 2023 unless oil prices slump or foreign assistance improves, the agency said.

The country’s central bank said on Thursday its reserves had fallen $584 million to $6.11 billion during the week ending December 16 due to external debt repayments, barely enough to cover a month of imports.

Pakistan also faces elevated political risks that may affect its policy trajectory over the next year, the agency said.

This year’s severe floods, surging food and energy inflation as well as rising global interest rates are also expected to depress Pakistan’s economic and fiscal outcomes, with refinancing challenges over the medium term, the report said.
The agency maintained its outlook at “stable”.

With the depleting reserves and a review by the International Monetary Fund pending since September, the South Asian nation is in dire need of external financing support.

S&P Global lowers Pakistan’s long-term sovereign credit rating

Agency says Pakistan's foreign exchange reserves will remain under pressure through 2023 unless oil prices slump or foreign assistance improves.

www.dawn.com

 

[ghazi52]

.,.,,.

SBP’s forex reserves plunge to 8-year low​

Dawn.com
December 22, 2022

The foreign exchange reserves held by the State Bank of Pakistan (SBP) continued their declining spree, plunging by $584 million to reach $6.1 billion as of Dec 16, the central bank announced on Thursday.

According to the central bank’s data, this is the lowest level of reserves since April 2014.

 

[ghazi52]

,.,..
According to the Forex Association of Pakistan (FAP), the buying and selling rates of dollar in the open market were recorded at Rs232.4 and Rs234.7 respectively.

The price of the euro was increased by 27 paisa and closed at Rs239.78 against the previous day’s closing of Rs239.51, according to State Bank.

 

[Bhuvan93]

But geoeconomics, saar!

Our geostrategic location is too important, saar!

You cannot let us default, saar! We have nukes!

 

[epebble]

This is not good:

Pakistan, IMF remain poles apart as power sector debt skyrockets​

Virtual meeting between Finance Minister Dar and IMF mission chief remains inconclusive, say sources

Pakistan and the International Monetary Fund (IMF) on Thursday could not agree on a roadmap for recouping on an average monthly Rs123 billion power sector losses that are further ballooning highly unsustainable circular debt.

Finance Minister Ishaq Dar held a virtual meeting with the IMF mission chief, Nathan Porter, aimed at finding a common ground to address the power sector issues, according to sources. The power sector has become the biggest stumbling block in the way of the 9th IMF review mission, which is the prerequisite for the approval of the next loan tranche of over $1.1 billion.

Pakistan, IMF remain poles apart as power sector debt skyrockets | The Express Tribune

Pakistan and the International Monetary Fund (IMF) on Thursday could not agree on a roadmap for recouping on an average monthly Rs123 billion power sector losses

tribune.com.pk

 

[epebble]

SBP Governor’s Annual Report has lot of interesting data

https://www.sbp.org.pk/reports/annual/Gov-AR/pdf/2022/Dec/Gov-AR.pdf