MOODY's decision to lower Pakistan's bond ratings from stable to negative reflects the gravity of its economic woes. The main cause it cited was the depleting forex reserves, now standing at a paltry $8.9 billion, barely enough for two months of imports. The ratings, since they are crucial in attracting foreign investment, would slow down the inflow of capital that is badly needed at the moment. The area the credit agency seemed equally worried about was the deteriorating law and order situation and lack of political stability. There is little doubt that factors like the US unilateral missile strikes and the wave of bomb blasts have the potential to turn a country into an economic wasteland. It bears repeating that Standards and Poor too had cut its rating from B-plus to B back in June, declaring that the environment in Pakistan was not very conducive to business. The government in the meanwhile has come up with an economic plan to check the downslide; yet it remains to be seen how it would implement it. Among others, the budget deficit and the declining value of the rupee, that has gone down over 20 percent this year, are exacting a heavy toll on the economy, pushing it to an insolvency-like situation. Liquidity is fast drying up. Add to this the report issued by Transparency International, which ranks Pakistan higher than before among the list of nations plagued by corruption. One would thus conclude that the trouble in major part is of our own making. An efficient team of financial managers and the right dose of good governance would certainly lessen the damage.