Pakistan: Petrol crisis could worsen due to credit worthiness

827777-fuel-1422262724-759-640x480ISLAMABAD: The ongoing fuel shortage that has led to worsening power blackouts is weighing on its credit worthiness and hindering its ability to meet key reform targets laid out by the IMF, ratings agency Moody’s warned Monday.
The country is currently in the grip of one of its worst power crises in years due to a shortfall in imported oil, with the situation exacerbated on Sunday by an attack on a key powerline in Balochistan.

Moody’s said that increasing energy imports without addressing structural issues that create so-called circular debt “will further strain Pakistan’s budget and balance of payments, a credit negative”. Read Full Article

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