ISLAMABAD: Moody’s upgrades Pakistan’s credit rating to ‘Caa1’ from ‘Caa2’, citing stronger external position.

In a statement, Moody’s said the country’s local and foreign currency credit ratings, previously at CAA2, have been improved to CAA1. According to the agency, Pakistan’s credit outlook has also been revised from “positive” to “stable.”

Moody’s said Pakistan’s better outdoor position is the cause of upgrade, the reason for the upgrade is also due to the ongoing reforms in the International Monetary Fund (IMF) program.

According to the World Rating Agency, there are expectations that Pakistan’s foreign exchange reserves will continue to grow, but Pakistan will need official partners.

Earlier, Finance Minister Mohammad Aurangzeb said at a function saying that Pakistan’s economy is moving towards a better direction and soon an international agency will announce the improvement of Pakistan’s rating.