ISLAMABAD — Finance Minister Muhammad Aurangzeb on Tuesday urged global rating agency Moody’s to upgrade Pakistan’s credit rating, citing significant macroeconomic improvements and reform progress. The call was made during a high-level virtual session attended by the minister, Minister of State for Finance Bilal Azhar Kayani, SBP Governor Jameel Ahmed, and other senior officials.
Pakistan has postponed launching international bonds since July 2021, mainly due to economic instability and a downgraded credit rating. Moody’s had upgraded Pakistan from Caa3 to Caa2 in March, changing its outlook from stable to positive following the resumption of the IMF programme.
During the meeting, the Pakistani delegation presented a detailed briefing on the country’s economic stabilization, structural reforms, and renewed investor confidence. Minister Aurangzeb highlighted the successful completion of the IMF Stand-By Arrangement, disbursement of its second tranche, and progress under the Resilience and Sustainability Facility (RSF) as major milestones.
He emphasized prudent fiscal measures introduced in the federal budget, steps towards trade liberalization, and efforts to reduce government expenditure. Pakistan’s renewed engagement with international capital markets— including $1 billion secured from the Middle East, plans for a Panda bond, and the intent to re-enter Eurobond markets—was also highlighted.
The team pointed to macroeconomic gains such as falling inflation, a lower policy rate, exchange rate stability, improved foreign reserves, and rising remittances and exports as proof of economic resilience.
Aurangzeb also stressed tax reforms under the prime minister’s direct oversight. He cited a Rs2 trillion revenue increase and reaffirmed Pakistan’s goal of raising the tax-to-GDP ratio to 13–13.5% in the coming years.
He concluded by reaffirming Pakistan’s commitment to sustained reforms, including privatisation, SOE restructuring, and governance improvement.
