Pakistan targets B+ sovereign rating by September 2027, finance minister says
Pakistan could be upgraded to a B+ sovereign credit rating by the first quarter of fiscal 2027-28, finance minister Muhammad Aurangzeb said, provided the country stays on its current path of macroeconomic stability and structural reform. Speaking to reporters at the Overseas Investors Chamber of Commerce and Industry, he said he was hopeful the upgrade would come by the end of the current fiscal year or in the first quarter of the next one. The pledge matters because a higher rating lowers the cost of the external borrowing Pakistan still relies on.
Mr Aurangzeb said three credit rating upgrades had been made on Pakistan by global agencies since April 2025, and noted that B+ is the best rating the country has held in its 40-year rating history. S&P Global Ratings has kept Pakistan at B with a stable outlook since July 2026, while Moody's raised its rating to B3 from Caa1 with a stable outlook in August 2026. The minister said the government had high ambition to break through into the BB rating category.
He attributed the upgrades to an improved external economy, citing record inflows of remittances and record foreign exchange reserves held by the State Bank of Pakistan, which reached $21.44 billion in September 2026. That raised import cover to around three months, in line with the international benchmark. Mr Aurangzeb said the macroeconomic stability, the rating upgrades and the privatisation of Pakistan International Airlines should convince more local and foreign investors to commit foreign direct investment.
Asked whether the ongoing $7 billion IMF Extended Fund Facility would be Pakistan's last programme, he said it was premature to say and that a decision would be taken during the course of FY27. He said Pakistan needed to gradually reduce its reliance on external financing and address short-term rollover and balance-of-payments requirements, describing the successful issuance of a $3 billion Eurobond as "an important step in the right direction".
Mr Aurangzeb said he remained hopeful that Pakistan's current account deficit would stay within the initial target of zero to 1% of gross domestic product in FY27, despite oil prices rising above $100 a barrel amid the ongoing Middle Eastern geopolitical crisis. He projected economic growth of 4% in FY27, compared with 3.7% in the preceding year, FY26.
