This is apropos a Business Recorder news item "S&P raises rating, says outlook stable" carried by the newspaper yesterday. According to it, Standard and Poor's has revised Pakistan long-term credit rating from B- to B, saying better policymaking had improved the economy's performance and raised the country's growth prospects.
The agency said that "Pakistan continued to benefit under its democratically elected government and that a reform programme had helped to restore economic stability".
The global rating agency of high repute seems to have given a boost to a beleaguered PML-N government at a crucial time. The rating agency's assessment has also given credence to the government's claims in relation to its achievements in economy. Unfortunately, however, it has also provided an opportunity to become complacent towards efforts generating growth, raising taxes, etc. The government therefore must not lose sight of the fact that country's structural weaknesses remain, including a narrow tax base and security risks, that weakened the government's effectiveness and weighed on the business climate. The government is also required to take steps aimed at attracting foreign investment. It must also take a firm decision with regard to public-sector entities (PSEs) without any further loss of time.
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