ISLAMABAD: The downgrading of Pakistan’s rating by Standard & Poor’s on October 6 by two notches and then on November 14 by one notch seems to be the part of international politics, as it has increased the vulnerability of Pakistan many times.

Owing to this very factor, banks have started showing hesitation in opening of L/Cs of the importers, a senior official in the Finance Ministry.

To substantiate Pakistan economic managers’ view, JP Morgan in its latest comment doubted the downgrading of Pakistan by S&P saying: “S&P decision to downgrade Pakistan to CCC last week, based on the ‘ongoing delay by Pakistan in securing external assistance essential for the immediate stabilization of its balance of payments position,’ was curious.”

Finance ministry official said that the authorities concerned were shocked over the apparently politically dominated decision of S&P to further downgrade Pakistan rating on November 14 as during the period between October 6 and November 14, the government of the day had to set its direction to move IMF to bailout its economy.

The economic mangers smelt the rat in the move to downgrade Pakistan’s economy from CCC+ to CCC as some countries want to ensure that Pakistan must move IMF, the official said.

He said that influential countries having major stakes in the IMF would have access to monitor Pakistan’s expenditures particularly in defence area. It is worth mentioning that USA has time and again raised the issue of unbridled expenditures of Inter Services Intelligence for its activities particularly with regard to combating terrorism.

Pakistan earlier wanted to escape moving the IMF. “ Pakistan would not move IMF at any cost and in case Pakistan decides to move IMF it would be would be done over his dead body,” Advisor to Prime Minister on Finance and Revenue had said at Karachi airport in reply to a media query prior to leaving for World Bank and IMF annual meetings held in Washington DC on October 11-13.

But the Friends of Pakistan including Saudi Arabia, USA, UAE and UK and donor agencies including World Bank, DFID, IDB and ADB asked Islamabad to first move IMF, then they would come up with the soft loan for beleaguered economy. The official said that recent downgrading of Pakistan by S&P is also the part of the campaign to ensure that Pakistan moves IMF.