Pakistan secures Fitch credit rating upgrade amid economic reforms

Pakistan's Finance Minister, Muhammad Aurangzeb, expressed optimism following Fitch's credit rating upgrade on Tuesday, describing it as a testament to the country's ongoing economic reforms.

In a video message, the minister emphasized the importance of maintaining the reform trajectory to ensure sustainable macroeconomic stability and avoid the cyclical boom-and-bust patterns of the past.

Aurangzeb highlighted that Pakistan's credit rating had been downgraded from B- in 2022 due to economic turmoil. However, the government has since implemented structural reforms and met quantitative benchmarks, enabling the country to regain its B- rating—returning to the position it held three years ago.

He noted that agencies are closely monitoring whether these improvements can be sustained.

Under the supervision of Prime Minister Muhammad Aurangzeb, the government aims to achieve a solid B rating by continuing its reform agenda.

The finance minister also pointed to growing confidence among local and international investors, citing the success of a recent minerals conference and ongoing overseas engagements as evidence of Pakistan's economic progress.

Fitch Ratings upgraded Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'B-' from 'CCC+', with a Stable outlook.

Fitch upgraded Pakistan’s outlook due to improved fiscal consolidation and structural reform momentum under the IMF program.