In the past few days, both Moody’s and Standard and Poor’s have cut the credit rating for Pakistan’s government bonds. This is primarily a result of two factors: political instability and a growing trade deficit. The new ratings will have a detrimental effect on foreign investment in Pakistan as investors lose confidence.
(May 22, 2008). Moody’s downgrades Pakistan ratings. Business Recorder.
(May 16, 2008). S&P cuts Pakistan rating on economy, politics. The News.