Aurangzeb courts Moody's for stronger sovereign rating
Finance Minister Muhammad Aurangzeb met representatives of Moody's on the sidelines of the IMF-World Bank meetings in Bangkok to discuss Pakistan's economic outlook and the prospects for a further sovereign rating upgrade, the finance ministry said on Wednesday.
According to a ministry statement, the discussions covered the country's recent rating upgrade, improved fiscal and external indicators, and renewed access to international capital markets. The finance minister set out efforts to replace costly short-term debt with longer-maturity financing without increasing the external debt stock. The delegation pointed to rising foreign exchange reserves, a contained current account deficit and reduced State Bank forward liabilities.
Aurangzeb reaffirmed the government's commitment to structural reforms and to sustainable, export-led growth beyond the IMF programme, and sought Moody's views on achieving a stronger rating and on striking the right balance between political risk and economic performance in its assessments. Earlier this month, he said Pakistan was expected to be upgraded to a 'B+' sovereign credit rating by the first quarter of the 2027-28 fiscal year by global agencies. Pakistan has been rated 'B' with a stable outlook by S&P Global Ratings since July 2026, while Moody's raised its rating to 'B3' from 'Caa1' with a stable outlook in August 2026.
In a separate meeting with Dr Abdulhamid Alkhalifa, president of the OPEC Fund for International Development, Aurangzeb highlighted Pakistan's economic stabilisation, progress under the IMF programme and renewed access to international capital markets, and welcomed the Fund's willingness to expand trade and project financing support. Discussions covered M6 motorway financing, including the approved first tranche, the pending loan agreement and subsequent tranches, and identified the ML-1 railway modernisation and power transmission infrastructure as key priorities.
Both sides emphasised faster approvals and stronger coordination to ensure timely project delivery, and also discussed regional peace and stability. The finance minister thanked Dr Alkhalifa for an invitation to visit the Fund, with the possibility of signing the project agreement during that visit.
