Prime Minister Shehbaz Sharif on Sunday expressed satisfaction over ease in inflation rate in last few months, saying the government was pursuing a policy of economic reforms.

In a statement from Prime Minister’s Office (PMO), PM Shehbaz was quoted as saying that recent upgrade by Moody’s in Pakistan credit rating was “an acknowledgement of country’s positive economic indicators by the international financial institutions”.

Moody’s Ratings (Moody’s) upgraded the government of Pakistan’s local and foreign currency issuer and senior unsecured debt ratings to Caa2 from Caa3.

The upgrade to Caa2 reflects Pakistan’s improving macroeconomic conditions and moderately better government liquidity and external positions, from very weak levels.

“Accordingly, Pakistan’s default risk has reduced to a level consistent with a Caa2 rating,” Moody’s said.

In July, Fitch Ratings also upgraded Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC+’ from ‘CCC’.

According to the statement on Sunday, the prime minister was satisfied with the Consumer Price Index (CPI) easing to 11% in July, which is expected to decline further in August.

The prime minister further said that the government was pursuing a policy of economic reforms and the implementation work was rapidly in progress over the right-sizing policy which he himself was monitoring.

Shehbaz expressed confidence that its positive impact on the economy would be visible soon.

He said the government was cognizant of the issues of the people and was striving day and night to resolve them.

Pakistan and the International Monetary Fund (IMF) authorities have reached a staff level agreement for $7-billion, 37-month loan programme aimed at cementing stability and inclusive growth.

The programme is subject to approval by the lender’s Executive Board, which Finance Minister Muhammad Aurangzeb sees by this month.