Aurangzeb meets Moody's, seeks stronger sovereign rating

Finance Minister Muhammad Aurangzeb met with Moody's at the IMF-World Bank meetings in Bangkok to discuss Pakistan's economic outlook and potential for a higher sovereign rating. The discussions covered the recent rating upgrade by Moody's, improved fiscal and external indicators, and increased access to international capital markets.

Aurangzeb emphasized efforts to transition from costly, short-term debt to longer-term financing without raising the external debt stock. The delegation pointed to rising foreign exchange reserves, a shrinking current account deficit, and decreased State Bank forward liabilities. Aurangzeb reiterated his dedication to structural reforms and export-led growth, while seeking Moody's insights on attaining a stronger rating and finding the optimal balance between political risk and economic performance in rating evaluations.

Earlier this month, Aurangzeb had stated that Pakistan was anticipated to receive a 'B+' sovereign credit rating from global agencies by the first quarter of the following fiscal year (July-September) 2027-28. Pakistan currently holds a 'B' rating with a stable outlook from S&P Global, while Moody's has upgraded its credit rating to 'B3' from 'Caa1' with a stable outlook since August 2026.

During a separate meeting with OPEC Fund President Dr Abdulhamid Alkhalifa, Aurangzeb highlighted Pakistan's economic stabilization, advancements under the IMF program, and renewed access to international capital. He appreciated the Fund's willingness to expand trade and project financing support for Pakistan, discussing key priorities like the M6 motorway financing, including the approved first tranche, pending loan agreement, and subsequent tranches.

Both sides stressed faster approvals and better coordination to ensure timely project delivery, while also addressing regional peace and stability. The finance minister expressed gratitude to Dr Alkhalifa for the invitation to attend the Fund, with the possibility of signing the project agreement during the visit.