The following tweet, published by Kamran Khan, a reporter at Dunya Media Group in Pakistan focuses on a Bloomberg article detailing the current economic outlook of Pakistan. The tweet raises concern as to Moody Investors Service’s downgrade of Pakistan’s local and foreign currency issuer as well as the country’s debt. Khan relays information from the article stating the investor service downgraded the country to level Caa3 which means there is a very high risk of defaulting: high credit, poor economic standing, and poor standing.

Kamran Khan’s tweet is concerning for Pakistan as it highlights the already crippled economic status of the country. Pakistan has previously signed an economic relief program with the International Monetary Fund (IMF) which will be expiring later this year. Given the current economic outlook, Pakistan’s future of financing both foreign and domestic is bleak. Increased inflation and fragmented supply chains mean Pakistan could potentially struggle to maintain trade relationships abroad. Currently, the economic problem in Pakistan has made its way into protests inspired by leaders including Imran Khan. It is a political crossroads between two administrations or leaders who have negatively impacted the Pakistani economy. Going forward, it will be interesting to see whether or not Pakistan renews its relief program with the IMF. A poor economy leads to poor development, which is not helpful in a country that is already extremely rural and poorly developed.

HR: Tweet from Kamran Khan – Wesley Barbara

BREAKING NEWS: DEFAULT RISK INCREASES Moody's further downgrades Pakistan rating to Caa3."Driven by Moody's assessment that Pakistan's increasingly fragile liquidity and external position significantly raises default risks to a level consistent with Caa3 rating pic.twitter.com/m4CuIv3FO3

— Kamran Khan (@AajKamranKhan) February 28, 2023