Rating agency Moody's has said IMF agreement will improve Pakistan's Caa3 category for more funding from bilateral and multilateral partner.

The latest report of the agency says IMF's staff-level agreement will improve funding prospects, but advised to strengthen the government’s ability to sustain reform implementation.

The new IMF agreement comes with conditions of far-reaching reforms, such as measures to broaden the tax base and removing exemptions and making timely adjustments of energy tariffs to restore the energy sector viability.

Other measures include improving state-owned enterprises' management and privatization, phasing out agricultural support prices and associated subsidies, advancing anti-corruption, governance and transparency reforms, and gradually liberalizing trade policy.