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S&P maintains stable outlook for Pakistan's economy

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IANS Islamabad
Last Updated : Oct 31 2017 | 2:13 PM IST

International rating agency Standard and Poor's (S&P) maintained a stable outlook for Pakistan's economy, negating the expected fears of a downgrade.

In its annual report released on Monday, the agency also affirmed Pakistan's "B" long-term and short-term sovereign credit rating, reports Xinhua news agency.

The S&P said it acknowledged Pakistani government's efforts for better law and order situation helped deplete gaps in infrastructure and energy and improve power shortages in the country.

The report said that the affirmation of Pakistan's rating reflects that economic prospects remain favourable while external and fiscal metrics of the country were unlikely to worsen materially from their current level.

The S&P hoped that Pakistan would continue the reforms programme and would be able to retain key economic targets. It also expected Islamabad to maintain macroeconomic stability, reduce fiscal and external vulnerabilities and promote growth supporting reforms.

The report expected the country's GDP to grow at an average of 5.7 per cent in the period from 2017 to 2020 as this stronger growth projection reflects large-scale investments taking place under the China-Pakistan Economic Corridor (CPEC) in energy and infrastructure sectors.

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Pakistan's GDP per capita was estimated at $1,500 in 2017, which is in the bottom 10 per cent of all countries rated by the S&P.

--IANS

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First Published: Oct 31 2017 | 2:04 PM IST

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