Pakistan’s economy more resilient to external shocks: Moody’s

Moody's Sovereign Credit Analyst Grace Lim has said Pakistan's economy now copes better with external shocks than it did during the 2022 oil crisis, as reported by Mettis Global. Her remarks came in a video that Khurram Schehzad shared on X, and they covered the recent Strait of Hormuz disruption along with the wider Middle East conflict.

Lim tied this better capacity to absorb shocks to macroeconomic stability built up across the previous two years. She identified lower inflation, a steady exchange rate and considerably larger foreign exchange reserves as the three main factors behind that strength. In her view, these elements together have strengthened Pakistan's buffers, letting the country navigate the latest regional and global jolts with greater ease than in earlier periods of outside pressure.

Lim stressed that such stability matters most when global conditions are unsettled. That point carries weight for Pakistan as the Middle East conflict and related Strait of Hormuz disruptions remain ongoing, she said.