On Oct. 22, 2015, Standard & Poor's Ratings Services affirmed its 'B-' long-term and 'B' short-term foreign and local currency sovereign credit ratings on Pakistan. It also retained a positive outlook on the long-term sovereign credit ratings.
Key Points of the Statement:
- Economic, fiscal, and external performance is strengthening in Pakistan, and domestic security has improved. However, legacy constraints on the ratings remain.
- It affirmed its 'B-' long-term and 'B' short-term sovereign credit ratings on Pakistan.
- The outlook on the long-term ratings remains positive.
According to the statement, the agency expects Pakistan's economy to grow by about 4.5% each year on average in 2015-2018, supported by strong services and construction, the spillover effects of rising remittance inflows, improving energy (gas and electricity) supplies, lower oil prices, and higher investment. A key investment driver will be related to the China-Pakistan Economic Corridor. They also expect per capita GDP growth, a better indicator of rising prosperity, to average 2.5% a year over the same period.