Pakistan’s capability to pay back foreign loan could weaken: Moody’s

NEW YORK: Pakistan’s capability to pay back foreign loan could become weaker if the amount increases further, according to Moody’s Investors Service.

However, Pakistan’s foreign exchange reserves are satisfactory enough to pay back foreign loans, Moody’s stated.

About imports in the country, the investors service has said that imports have gone up to fulfill the needs created due to rise in investment in the country.

Although increase in investment in Pakistan is inevitable, Moody’s stated that the country has attracted heavy investment also due to the China-Pakistan Economic Corridor.

This rise in investment has called for the need to increase imports, as per the investor service.

Recently, China has been reported to have asked its state-owned companies to invest in Pakistan and transfer technology to the country under CPEC.

This was said by Dr Li Jing Feng, director of Regional Studies and Strategic Research Centre at Sichuan Academy of Social Sciences, Beijing, China, at a roundtable on “BCIM-EC & CPEC within China’s Belt-and-Road-Initiatives”.

He also said Gwadar is more important than Chabahar port as it is a deep sea port and bigger ships cannot dock in the Iranian port.