Moody’s Investors Services has expressed concerns that the recent implementation of new US tariffs could adversely affect Pakistan’s external financial stability and economic growth prospects.
In its report titled “Tariffs – Asia-Pacific,” Moody’s noted that these tariffs are more stringent than previously anticipated and could have a negative impact on the region, including Pakistan.
Moody’s highlighted that countries like Pakistan, which have relatively fragile current account balances and limited capacity to import from the US, might experience a deterioration in their external positions. This situation could further challenge Pakistan’s economic growth outlook.
The report also pointed out that while Pakistan’s direct export exposure to the US is lower compared to some other Asian countries, its exports are heavily concentrated in sectors such as food, textiles, and wood products. Exports in these sectors are more sensitive to price changes and could be vulnerable to fluctuations in US demand.
Moody’s further observed that the new tariffs could disrupt global supply chains and dampen business sentiment, potentially leading to reduced investment and economic activity in the Asia-Pacific region, including Pakistan.
Moody’s assessment indicates that Pakistan’s economy may face increased external pressures due to the newly imposed US tariffs, necessitating careful monitoring and strategic economic planning to mitigate potential adverse effects.
