BANGKOK, October 15, 2026: Finance Minister Muhammad Aurangzeb met representatives of Moody’s Ratings on the sidelines of the International Monetary Fund–World Bank meetings in Bangkok to discuss Pakistan’s economic outlook and prospects for a further sovereign credit rating upgrade, the Finance Ministry said Wednesday.
According to the ministry, the discussions covered Pakistan’s recent rating improvement, stronger fiscal and external indicators, and renewed access to international capital markets.
Aurangzeb outlined the government’s efforts to replace costly short-term borrowing with longer-maturity financing without increasing the country’s external debt stock. He also highlighted rising foreign exchange reserves, a contained current account deficit and reduced forward liabilities at the State Bank of Pakistan.
The finance minister reaffirmed the government’s commitment to structural reforms and sustainable, export-led growth beyond the current International Monetary Fund programme.
He also sought Moody’s assessment of the steps required to secure a stronger sovereign rating and the balance the agency gives to political risk and economic performance in its evaluations.
Pakistan Targets Further Credit Rating Improvement
Earlier this month, Aurangzeb said Pakistan could receive a B+ sovereign credit rating from global rating agencies in the first quarter of fiscal year 2027–28, covering July to September 2027.
Pakistan has held a B rating with a stable outlook from S&P Global Ratings since July 2026. Moody’s upgraded the country to B3 from Caa1, also with a stable outlook, in August 2026.
A higher sovereign rating can improve a country’s standing with international investors and potentially lower borrowing costs. However, any further upgrade will depend on the relevant rating agencies’ assessments of Pakistan’s economic performance, debt position and policy outlook.
OPEC Fund Talks Focus on Infrastructure Financing
In a separate meeting, Aurangzeb met Dr Abdulhamid Alkhalifa, president of the OPEC Fund for International Development, to discuss Pakistan’s economic stabilisation, progress under the IMF programme and renewed access to international capital markets.
The minister welcomed the fund’s willingness to expand trade and project financing support for Pakistan.
The discussions included financing for the M6 motorway, including the approved first tranche, the pending loan agreement and subsequent tranches. Both sides also identified the ML-1 railway modernisation project and power transmission infrastructure as key priorities.
Officials emphasised the need to accelerate approvals and strengthen coordination to ensure projects proceed on schedule. The meeting also covered regional peace and stability.
Aurangzeb thanked Alkhalifa for inviting him to visit the fund. The visit could provide an opportunity to sign the relevant project agreement, the ministry said.
The meetings reflect Pakistan’s efforts to strengthen its engagement with international financial institutions, attract financing for infrastructure projects and improve investor confidence as it pursues longer-term economic reforms.
