Pakistan’s economy more resilient to external shocks: Moody’s

September 08, 2026 (MLN): Pakistan's economy is now more resilient to external shocks, including the recent Strait of Hormuz disruption, than it was during the 2022 oil crisis, according to Moody's Sovereign Credit Analyst Grace Lim.

In a video shared by Khurram Schehzad on X, Grace Lim said the country's improved capacity to absorb shocks stems from macroeconomic stability built over the past two years.

She pointed to three key drivers underpinning this resilience: lower inflation, a stable exchange rate, and significantly higher foreign exchange reserves.

According to Grace Lim, these factors have collectively strengthened Pakistan's buffers, allowing it to navigate recent regional and global disruptions more effectively than in previous episodes of external pressure.

She noted that this stability becomes especially critical during periods of global instability, positioning Pakistan on firmer footing to withstand shocks arising from the ongoing Middle East conflict and related disruptions to the Strait of Hormuz.

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