Pakistan eyes B+ sovereign credit rating by Sept 2027: finance minister

Finance Minister Muhammad Aurangzeb has expressed optimism that Pakistan will be upgraded to a 'B+' sovereign credit rating by the first quarter of the next fiscal year 2027-28. This assessment comes from global agencies, with S&P Global Ratings currently assigning Pakistan a 'B' rating with a stable outlook, while Moody's upgraded the country's credit rating to 'B3' from 'Caa1' with a stable outlook in August 2026.

Aurangzeb highlighted the importance of macroeconomic stability and structural reforms in achieving this rating milestone. He also noted that Pakistan has had three credit rating upgrades since April 2025, with the highest rating being 'B+' in the country's 40-year history. Aurangzeb shared the aspirations of reaching a 'BB' rating category, which he believes will be aided by improved external economic conditions, record high remittance inflows, and a strong foreign exchange reserve position.

The successful privatisation of Pakistan International Airlines (PIA) and the reduction in reliance on external financing are also seen as positive steps towards attracting more local and foreign investors. The ongoing IMF Extended Fund Facility (EFF) program, worth $7 billion, remains a topic of discussion, but it is premature to assume it will be the country's final program.

Aurangzeb emphasized the importance of gradually reducing reliance on foreign funding to address short-term rollover and balance-of-payments requirements. He expressed confidence that Pakistan's current account deficit would remain within the initial target of zero to 1% of GDP in FY27, despite the surge in international oil prices due to geopolitical tensions in the Middle East.

The finance minister projected a 4% growth rate for Pakistan's economy in FY27, up from 3.7% in FY26.