In the world of finance, credit ratings are kind of like a character certificate for individuals, companies, and even entire countries.
Well, when it comes to Pakistan’s rating, we could probably come up with a whole bunch of puns, but as a serious publication, we’re going to hold back on that.
The good news is that Fitch, one of the most widely recognized credit rating agencies, has actually just upgraded Pakistan’s rating to CCC+. But don’t get too excited just yet – this rating still means the country has a substantial risk of defaulting on its debt. And that, in turn, means companies operating here would also be carrying similar levels of risk.
Now, put yourself in the shoes of an investor. How would you feel about that kind of news? Not great, I’m guessing. And that’s exactly what’s been happening – private investors have been apprehensive of wagering their money on Pakistan, especially after the economic crisis that unfolded in 2022.
This lack of investment has led to a scarcity of capital available for important projects, whether it’s building large-scale power plants or financing startups. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
