S&P downgrades Pak currency rating

KARACHI - Standard & Poor’s, the US-based credit rating providing company, has downgraded Pakistan’s long-term foreign currency rating to CCC+ from B, showing its concern over country’s weak balance of payment outlook which is leading to country’s inability to pay worth 3 billion dollars in terms of debt-servicing till next year.

The rating can be declined further in case the govt fails to bring an end to the widening external imbalances as the economy is heading towards worst from bad, the report said.

Due to frequent adverse external liquidity position,Pakistan seems incapable to meet 3 billion dollars of external debt servicing pledges this year, the report indicated.

It is important to mention here that this rating result has come up when the country is going through a worst-ever foreign reserve crisis triggered by soaring trade and current account deficits.