S&P downgrades outlook on Pakistan's long-term ratings to 'negative'

The global economic slowdown poses fresh risks to Pakistan's post-pandemic recovery

Rating agency Standard and Poor's (S&P) has revised the outlook on Pakistan's long-term ratings from "Stable" to "Negative" on the increasing risk to the government's liquidity posed by a difficult external landscape.

However, it affirmed our 'B-' long-term and 'B' short-term sovereign credit ratings on Pakistan, as well as 'B-' long-term issue rating on Pakistan's senior unsecured notes and sukuk trust certificates.

Pakistan's external position is weakening due to higher commodity prices, rupee depreciation, and tighter global financial conditions. External resources are likely to remain under pressure even after expected disbursements from the IMF under the restored Extended Fund Facility (EFF) program,