Pakistan engaged with rating agencies to highlight economic reforms: finance minister

Pakistan is in talks with rating agencies , including S&P Global Ratings, Moody’s Ratings, and Fitch Ratings, at the highest government levels to explain its economic reforms and achievements, the country's Finance Minister Muhammad Aurangzeb shared at a briefing on Sunday.

He mentioned that many developments have taken place since mid-October with international financial institutions, finance ministers of other countries, and rating agencies.

“They have acknowledged the milestones achieved and appreciated the turnaround. However, we have received the message that there is no room for complacency — we have brought macroeconomic stability and need to take it forward.”

Aurangzeb informed that Prime Minister Shehbaz Sharif would soon share the economic roadmap with the nation. The government has implemented a solid program to help meet key goals, he added

“In conjunction with the State Bank, we are increasing foreign exchange reserves, which now cover 2.5 months of imports, aiming to cover three months.”

The minister said the visiting International Monetary Fund (IMF) team last week discussed taxation reforms, energy reforms, public finance, and the privatization agenda and noted that all September benchmarks were met.

He also mentioned that there will be right-sizing of the federal government. On taxation and documentation, he emphasized the government's firm stance on compliance and enforcement.

Pakistan also discussed with the IMF the roadmap for agricultural tax with provincial support, as well as climate resilience funding.

Aurangzeb stated that due to the IMF Extended Funding Facility (EFF), macroeconomic indicators started improving, with inflation dropping from a high of 38% to single digits in the past 14 months. The currency is stable, and interest rates have been reduced, he observed.