Moody’s Investors services have expressed concerns that the recent implementation of the new US tariffs could negatively affect external financial stability in Pakistan and economic growth prospects.
In its report entitled “The Customs Wright and the Pacific Ocean”, Modi pointed out that these definitions are more strict than previously expected and could have a negative impact on the region, including Pakistan.
Moody highlighted that countries like Pakistan, which have relatively fragile current account balances and limited ability to import from the United States, may face a deterioration in its external positions. This situation can challenge the forecasts of the economic growth of Pakistan.
The report also indicated that although Pakistan is exporting to the United States less compared to some other Asian countries, its exports are largely concentrated in sectors such as food, textiles and wood products. Exports in these sectors are more sensitive to price changes and can be vulnerable to fluctuations in the request of the United States.
Moody’s also noted that the new definitions can disrupt global supply chains and inhibit commercial morale, which may lead to low investment and economic activity in the Asia and Pacific region, including Pakistan.
Moody’s evaluation indicates that Pakistan’s economy may face increasing external pressure due to the newly imposed American definitions, which requires accurate monitoring and strategic economic planning to mitigate the potential harmful effects.
