The downward trend in deficit reduction must be continued to warrant an upgrade. Something must be done to increase revenues and not in decreasing expenditures. Its underlying trends and processes that really drive our view on credit ratings versus the actual numbers per se.

The government will respond in a more prompt and appropriate way. They will be in a better position to handle whatever shock may come their way.

What we would look for is a gradual phasing out of the fuel subsidy and a more effective and coordinated policy response from the government and monetary authorities as and when shocks arise. Shocks such as high oil prices, a classic case of external shock, caught the government by surprise.

Sharp declines in the government?s external debt indicators and structural improvements that, over time, should help Pakistan?s export capacity motivated the change in outlook for the foreign currency rating.

We have yet to see how the law is going to be implemented, how much revenues would it generate and how these additional collections would be spent.

have tended to be slow, reactive, and incremental over the past year.