Moody's downgrades cash-strapped Pakistan's outlook from stable to negative

Rating agency Moody's Investor Service on Thursday downgraded cash-strapped Pakistan's outlook from stable to negative, citing ‘heightened external vulnerability’ and uncertainty around securing external financing to meet the country's needs, a media report has said. 

The Moody’s report added that the country's ‘weak institutions and governance strength’ had added uncertainty around the future direction of macroeconomic policy, including whether Pakistan would complete the IMF Extended Fund Facility (EFF) programme and maintain a credible policy path that supports further financing.