Prime Minister Shehbaz Sharif expressed satisfaction on Sunday over the recent reduction in inflation rates and the upgrade in Pakistan’s credit rating by Moody’s, calling the anticipated further decrease in inflation in September a promising sign for the economy.
In a statement from the Prime Minister’s Office, Shehbaz commended the decline in inflation indicators as reported by the Pakistan Bureau of Statistics. “The Consumer Price Index experienced a notable decrease in July 2024, bringing the inflation rate down to 11%. Economic experts’ predictions of further inflation reduction by September are a positive indication for the country’s economic health,” he stated.
The prime minister highlighted the significance of Pakistan’s improved standing in the global financial community, noting that after Fitch, the international rating agency Moody’s has also upgraded the country’s credit rating. This upgrade, according to Shehbaz, reflects Pakistan’s improving economic indicators and its resilience in the face of challenges.
“Our administration remains firmly committed to implementing economic reforms. We are actively pursuing the right-sizing policy, which I am personally overseeing to ensure its success. The economic benefits of these reforms will soon be visible to all,” the premier affirmed, underscoring the government’s dedication to sustainable economic growth.
Shehbaz also emphasized the relief measures introduced by the federal and Punjab governments, particularly for electricity consumers, alongside the recent reduction in petroleum product prices. “Our government is resolute in its mission to pass on all benefits to the common man. The diligent efforts of our economic and financial team are steering the nation towards economic stability,” he added.
Acknowledging the challenges faced by the public, the prime minister assured that the government was working tirelessly to mitigate these difficulties and improve the lives of the people.
Moody’s, one of the leading global rating agencies, recently upgraded Pakistan’s local and foreign currency issuer and senior unsecured debt ratings to Caa2 from Caa3. The agency attributed this upgrade to Pakistan’s improving macroeconomic conditions and a moderately better government liquidity and external position. “Pakistan’s default risk has now reduced to a level consistent with a Caa2 rating,” Moody’s stated, citing increased certainty around the country’s external financing sources following the staff-level agreement with the International Monetary Fund (IMF) in July for a $7 billion extended fund facility (EFF).
The prime minister’s remarks signal a cautious optimism about the future, as the government continues to navigate complex economic challenges.
