PM’s ouster raises risk profile for investors: Moody’s

ISLAMABAD: Political strife constrains Pakistan’s credit profile, Moody’s Investors Service said in an email to Bloomberg.

The ousting of Pakistan’s prime minister by the country’s top court dramatically raises the risk profile for investors and businesses in the tumultuous but fast growing South Asian economy, reports Bloomberg.

Nawaz Sharif’s disqualification from holding public office poses big challenges to the country’s credit profile, according to Bloomberg.Political strife constrains Pakistan’s credit profile, Moody’s Investors Service said in an email to Bloomberg, adding the removal of Nawaz will detract from policymaking in economic and fiscal matters and reduce the effectiveness of government policy in general.

The political developments are unlikely to significantly alter nuclear-armed Pakistan’s already fraught relationship with India. At the same time, they are not expected to dent ally China’s planned infrastructure investments in Pakistan totalling around $50 billion.Still investors viewed the removal of Nawaz as a near term negative, which makes Pakistan an even more precarious place to invest, Bloomberg said in the report.