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Stability in credit profile can be achieved with CPEC: Moody’s

Moody’s investors service says as Pakistan is currently at a stable B3 credit rating, the economic activities will get stronger with investment through CPEC and will help maintaining the credits profile. The report considers high debt burden, low debt affordability, weak physical and social infrastructure, increasing external payments, increased imports, declining exports and reduction in foreign exchange reserves as challenges for this credit profile.

However the potential for strong growth can be expect with successful implementation of CPEC related projects which can cause a trigger in international domestic investment but on the other hand these projects can also increase debt burden due to increased fiscal costs.

Sovereign rating can be upgraded with strong liquidity position, rapid reduction in debt burden, improved infrastructure and attracted investment environment.

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