11-29-2006, 03:28 AM
<b>Pakistan Bond Ratings Raised by Moody's on Lower Debt </b>
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->The upgrade in the South Asian nation's rating, which puts it on par with the Philippines, Indonesia and Jamaica, will improve Pakistan's standing as an investment destination and help the government lower borrowing costs. Pakistan's $129 billion economy is forecast to expand 7 percent this year, from 6.6 percent growth in the last fiscal year.
<b>Concerns</b>
Pakistan's rising current account deficit, inflation and tax to GDP ratio arising from a narrow tax base are concerns, Moody's said. The current account deficit widened to $2.59 billion in the July-September period from $1.58 billion. The deficit could widen to $6.5 billion this year, from about $5 billion last year, KASB Securities Ltd. said in an Oct. 12 report.
``A substantial portion of extra government expenditure is being directed towards development spending and reconstruction following the 2005 earthquake,'' the report said.
Pakistan plans to spend about $5.2 billion in five years to rehabilitate 3 million people left homeless and reconstruct cities destroyed by the Oct. 8, 2005, earthquake in the country's northern areas. The quake killed more than 73,000 people. <!--QuoteEnd--><!--QuoteEEnd-->
Nareshji,
This news in very interesting. Why this gift?
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->The upgrade in the South Asian nation's rating, which puts it on par with the Philippines, Indonesia and Jamaica, will improve Pakistan's standing as an investment destination and help the government lower borrowing costs. Pakistan's $129 billion economy is forecast to expand 7 percent this year, from 6.6 percent growth in the last fiscal year.
<b>Concerns</b>
Pakistan's rising current account deficit, inflation and tax to GDP ratio arising from a narrow tax base are concerns, Moody's said. The current account deficit widened to $2.59 billion in the July-September period from $1.58 billion. The deficit could widen to $6.5 billion this year, from about $5 billion last year, KASB Securities Ltd. said in an Oct. 12 report.
``A substantial portion of extra government expenditure is being directed towards development spending and reconstruction following the 2005 earthquake,'' the report said.
Pakistan plans to spend about $5.2 billion in five years to rehabilitate 3 million people left homeless and reconstruct cities destroyed by the Oct. 8, 2005, earthquake in the country's northern areas. The quake killed more than 73,000 people. <!--QuoteEnd--><!--QuoteEEnd-->
Nareshji,
This news in very interesting. Why this gift?