Finance Minister Muhammad Aurangzeb, in a key engagement on Tuesday, presented Moody’s Ratings, a global credit rating agency, with “compelling evidence” of Pakistan’s economic recovery and reform momentum.
Accompanied by Minister of State for Finance Bilal Azhar Kayani, the Governor of the State Bank of Pakistan (SBP) Jameel Ahmed, and senior officials from key ministries, Aurangzeb highlighted the country’s progress in stabilizing the economy—including a sharp reduction in inflation, a cut in the policy rate, stabilization of the exchange rate, a current account surplus, and a surge in foreign exchange reserves—crossing $14 billion by the end of June.
Improvements in remittance inflows and export performance were also cited as signs of resilience and renewed investor confidence, read a statement released by the Finance Division.
During the in-depth session, the finance minister apprised the Moody’s team of the significant strides Pakistan has made in stabilising its economy and laying the foundations for sustainable and inclusive growth.
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He underlined the successful completion of the final IMF review under the Stand-By Arrangement, including the disbursement of the second tranche and progress under the Resilience and Sustainability Facility (RSF), as key milestones that have restored confidence in Pakistan’s economic management.
Aurangzeb highlighted a series of structural reforms undertaken by the government to anchor long-term stability. These included fiscal measures in the recently announced budget, tariff and trade liberalisation geared towards export-led growth, and concerted efforts to rationalise expenditure.
The ongoing discussions with the United States on preferential tariff access were also noted as making encouraging headway.
The meeting further outlined Pakistan’s re-engagement with global financial markets, including the successful arrangement of $1 billion in commercial financing from the Middle Eastern region, plans for an inaugural Panda bond, and Pakistan’s intent to explore the Eurobond and other international debt markets as credit ratings improve.
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As per the statement, the Moody’s team was provided a comprehensive overview of Pakistan’s reform journey, with a particular emphasis on improving the tax-to-GDP ratio through technology-driven tax administration reforms, digitisation of systems, and robust enforcement measures.
Aurangzeb emphasised that the government was implementing measures to expand the tax base, plug leakages, and enhance compliance.
He noted that the Rs2 trillion revenue delta achieved this year had come through autonomous efforts, and the government was firmly committed to reaching a tax-to-GDP target of 13 to 13.5% in the next few years.
The finance minister also addressed queries from the Moody’s team and reiterated Pakistan’s commitment to staying the course on macroeconomic reforms, including in areas of privatisation, restructuring of state-owned enterprises (SOEs), and right-sizing of government.
Aurangzeb expressed optimism that the improving macroeconomic indicators and reform momentum would be positively acknowledged by rating agencies, further strengthening Pakistan’s case to tap international markets and deepen its external sector stability.
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