Pakistan is seeking another sovereign credit rating upgrade as Finance Minister Muhammad Aurangzeb discusses the country’s economic outlook with Moody’s, following recent improvements in its credit ratings and financial indicators.
The meeting took place on the sidelines of the IMF-World Bank Annual Meetings in Bangkok, where Aurangzeb outlined the government’s efforts to strengthen the economy and improve Pakistan’s standing in international financial markets, according to the finance ministry.
Talks focused on Pakistan’s recent rating upgrades, rising foreign exchange reserves, a contained current account deficit and lower forward liabilities of the State Bank of Pakistan (SBP).
Aurangzeb also highlighted plans to replace expensive short-term borrowing with financing spread over longer periods, without adding to the country’s external debt stock. He said the government remained committed to structural reforms and sustainable, export-led growth beyond the current IMF programme.
The finance minister also sought Moody’s assessment of what Pakistan would need to do to secure a stronger rating. Discussions included how the agency weighs political risks against improvements in economic performance.
Earlier this month, Aurangzeb said Pakistan expected international rating agencies to raise its sovereign credit rating to ‘B+’ by the first quarter of fiscal year 2027-28, covering July to September 2027.
S&P Global Ratings has assigned Pakistan a ‘B’ rating with a stable outlook since July 2026. Moody’s upgraded the country to ‘B3’ from ‘Caa1’ in August, also maintaining a stable outlook.
A higher credit rating can help a country borrow from international markets on better terms. However, sustained improvements in economic stability, debt management and external finances remain important for further upgrades.
Pakistan discusses funding for major infrastructure projects
In a separate meeting in Bangkok, Aurangzeb met Dr Abdulhamid Alkhalifa, president of the OPEC Fund for International Development, to discuss financing for key infrastructure projects.
The finance minister briefed the fund’s president on Pakistan’s economic stabilisation, progress under the IMF programme and renewed access to international capital markets. He also welcomed the fund’s willingness to expand trade and project financing support for the country.
The discussions covered financing for the M6 motorway, including the first tranche already approved, the pending loan agreement and subsequent funding tranches.
Both sides also identified the modernisation of the Main Line-1 (ML-1) railway and power transmission infrastructure as priority areas.
The meeting stressed the need to speed up approvals and improve coordination to ensure projects are completed on time. Regional peace and stability also featured in the discussions.
Aurangzeb thanked Alkhalifa for inviting him to visit the OPEC Fund, with the possibility of signing the project agreement during the visit.
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