According to Standard and Poor’s (S&P), a credit-rating agency based in New York, Pakistan’s long and short-term ratings have been categorised as stable despite the strain of economic stagnation, a narrow tax base and regional security risks. Signifying the relative safety in regards to investments, these ratings go a long way in restoring investor confidence in the Pakistani economy.

Following the success of fiscal reforms in the previous fiscal year, S&P’s rating showed that the same positive momentum could resume once the economy resumes—provided multilateral funding remains constant throughout so that external debt obligations can be fulfilled. Such statistics act as a greenlight for investors looking to buy stakes in business, increasing the country’s Foreign Direct Investment (FDI) as a result. Traditionally, FDI has always been helpful in establishing productive businesses, creating employment opportunities, sponsoring long-term development and aiding the government through an inflow of capital. Given that it has been experiencing a low for the past 11 months, this encouragement to give businesses monetary support could be the boost that Pakistan needs from the internal community in the status quo.

Furthermore, interest rates within the country have been reduced and maintained. This ensures that saving becomes a priority for the people so that they are able to invest in profitable financial ventures, whether that’s in the real-estate sector or industrial, so that the value of their savings does not take a hit. As such, the focus is then placed on nurturing economic growth, through developing businesses, rather than saving to kickstart it abruptly.

The reality is, there is no quick fix to the financial troubles that Pakistan faces today. However, reports like S&P’s indicate that recovery is indeed possible and within our grasp. Effective and comprehensive policies that ensure long-term success, albeit gradual, are needed rather than urgent solutions that keep us afloat for the present.