Pakistan seeks path to stronger sovereign ratings in Moody’s, Fitch talks

Pakistan discussed its economic outlook and prospects for stronger sovereign credit ratings in separate meetings with Moody’s and Fitch Ratings during the World Bank Group-International Monetary Fund annual meetings in Bangkok, the Finance Ministry said.

Finance Minister Muhammad Aurangzeb highlighted improved fiscal and external indicators, rising foreign exchange reserves, declining debt-servicing costs and renewed access to international capital markets during the meetings.

What is Pakistan telling credit-rating agencies?

Pakistan is highlighting stronger reserves, fiscal consolidation, lower debt-servicing costs and longer borrowing maturities as it seeks further rating improvements. The government is also stressing continued structural reforms, export-led growth and its commitment to completing the IMF program.

In a meeting with Moody’s on October 15, Aurangzeb discussed Pakistan’s recent rating upgrade and outlined efforts to replace costly, short-term debt with longer-maturity financing without increasing the country’s external debt stock.

The delegation also highlighted rising foreign exchange reserves, a contained current account deficit and reduced forward liabilities of the State Bank of Pakistan.

Aurangzeb reaffirmed the government’s commitment to structural reforms and sustainable, export-led growth beyond the IMF program.

He also sought Moody’s views on what would be required for Pakistan to achieve a stronger sovereign rating and how the agency balances political risk against economic performance in its assessments.

Pakistan asks Fitch about path toward BB category

In a separate meeting with Fitch Ratings on October 16, Aurangzeb and State Bank of Pakistan Governor Jameel Ahmad discussed fiscal consolidation, sustained primary budget surpluses, inflation trends, monetary policy and exchange rate stability.

The discussions also covered reserve accumulation, reduced forward liabilities and stronger external buffers, which the Pakistani delegation said would improve the country’s ability to withstand economic shocks.

The delegation highlighted improving debt sustainability, declining debt-servicing costs, longer borrowing maturities and assurances over bilateral debt rollovers.

Aurangzeb reaffirmed Pakistan’s commitment to completing the IMF program, implementing structural reforms and promoting export-led growth.

He also discussed Pakistan’s trade and investment engagement with the United States and sought Fitch’s assessment of the requirements for progressing toward the BB rating category.

Neither Finance Ministry announcement disclosed an immediate rating action following the meetings.