Moody’s Investors Service said that Pakistan and Sri Lanka are among the South Asian countries that are most vulnerable to balance of payments (BoP) crises.
The international credit ratings agency issued the report citing low exports and the lack of foreign direct investment.
Moody’s said India was the least vulnerable country to BoP crises due to its larger and more diversified export sector, adding that New Delhi also had better macroeconomic policy management in place.
In its latest report, Moody’s said, “Bangladesh, Pakistan and Sri Lanka have much weaker infrastructure compared with India, contributing to high costs to trade,” adding that the South Asian nations’ market access to other countries is limited on account of them having fewer trade agreements.