Moody's terms external debt payments of Pakistan as worrisome

The external debt payment of Pakistan is worrisome, Moody’s has said in a statement.

The international rating agency has stated in a report that the International Monetary Fund (IMF) has likely required prior actions regarding the measures to raise revenue before the release of next loan tranche of its program.

It also stated that there has been an increase in the risks for the Government of Pakistan due to liquidity and external vulnerability and that the country’s ability to secure required financing to fully meet its requirements during the next few years will be at risk.

It stated that there was no certainty yet on whether, and if so when, IMF financing will be forthcoming adding that Pakistan the Fund has noted considerable progress on policy measures to address the domestic and external imbalances during the visit.

It added that due to the political and social concerns it would be difficult for the government to implement the reforms required by IMF.