Pakistan may face serious financing issues: Moody’s

Moody’s credit rating agency has placed Pakistan among countries that may face serious financing issues in the extreme scenario under the ongoing US-China trade tensions, as Islamabad’s reliance on foreign currency borrowing and thin reserve coverage of external debt payments have weakened its debt affordability. While Moody’s assumes generally stable financing conditions with slowing global growth, ongoing US and China tensions and global flashpoints of political risk, sovereigns in emerging markets (EM) and frontier markets (FM) face a material risk of a period of heightened financing stress.