Pakistan, Aug. 24 -- Moody's Ratings has upgraded Pakistan's government credit rating to B3 from Caa1. The also maintained a stable outlook for Pakistan. The upgrade covers local and foreign currency debt ratings.

Moody's said the decision reflects expected improvements in governance and Pakistan's external position. It expects these developments to support stronger fiscal performance. The also upgraded Pakistan's senior unsecured medium-term note programme to B3.

Pakistan's foreign exchange reserves have continued to improve since Moody's previous rating action. The linked this progress to sustained macroeconomic stabilisation. It also noted lower domestic financing costs following monetary easing.

Moody's said Pakistan's improved fis...