Finance Minister Meets Moody’s Representatives; Pakistan’s Credit Rating May Improve Further
ISLAMABAD: Federal Finance Minister Muhammad Aurangzeb has held an important meeting with representatives of Moody’s in Bangkok to discuss Pakistan’s credit rating, economic indicators and prospects for regaining access to international capital markets.
According to Express News, the meeting took place on the sidelines of the annual meetings of the World Bank Group and the International Monetary Fund (IMF), where both sides reviewed Pakistan’s economic outlook and sovereign credit profile.
Discussions focused on the recent improvement in Pakistan’s credit rating, progress in fiscal and external sector indicators, and the country’s prospects for returning to international capital markets.
During the meeting, Muhammad Aurangzeb informed Moody’s representatives that Pakistan was seeking to replace expensive short-term borrowing with long-term financing without increasing its overall external debt burden.
The participants also discussed debt management strategies and measures to secure long-term financial resources to meet the country’s financing requirements.
Foreign Exchange Reserves and Economic Reforms Highlighted
The Pakistani delegation highlighted improvements in foreign exchange reserves, efforts to keep the current account deficit under control, and a reduction in the State Bank of Pakistan’s forward liabilities.
The delegation also reaffirmed Pakistan’s commitment to continuing structural reforms after the completion of the IMF programme.
Officials emphasised that the government would continue pursuing export-led and sustainable economic growth to strengthen the country’s economic fundamentals and improve its financial position.
Finance Minister Seeks Moody’s Assessment of Further Rating Improvement
Muhammad Aurangzeb also sought the views of Moody’s representatives on the prospects for further improvement in Pakistan’s credit rating.
The meeting discussed the importance of appropriately accounting for political risks and economic performance during the credit rating assessment process.
A further improvement in Pakistan’s credit rating could help strengthen investor confidence and improve the country’s ability to access international capital markets on more favourable terms.
However, any change in the rating would depend on Moody’s independent assessment of Pakistan’s economic performance, debt sustainability, external financing position and overall risk profile.
