Pakistan plans to raise funds after better international ratings

Pakistan is banking on an international credit ratings upgrade as the country plans to issue international bonds and raise funds from commercial banks.

"International credit rating agencies are expected to upgrade the country’s ratings soon, which will enable access to Western capital markets at a favorable interest rate," Finance Minister Muhammad Aurangzeb told the parliamentary panel.

"Pakistan is still in talks with foreign commercial banks. We can’t access the global market on a C+++ rating."

Nonetheless, the government is trying to tap the Chinese capital market by the end of the current fiscal year for funds.

Prime Minister Shehbaz Sharif's government is talking to the International Monetary Fund (IMF) to get money for its climate resilience program. They will discuss this further when the IMF visits Pakistan in March for a review of its $7 billion loan program.

The prime minister said that loans for industries are cheaper now because of lower interest rates, and he expects rates to drop even more.

The minister mentioned that Pakistan didn't follow through on promised reforms, leading to stricter conditions from the IMF.