Pakistan eyes double-B rating: FinMin

Pakistan is aiming to enter the double-B sovereign rating category through sustained economic improvements, Finance Minister Muhammad Aurangzeb has said, citing a fiscal deficit at a 22-year low, three consecutive years of primary surpluses and foreign exchange reserves at a historic high covering three months of imports, according to an official statement issued by the Ministry of Finance on Wednesday.

The minister held a series of engagements with international investors, credit rating agencies, multilateral financial institutions and US officials on the sidelines of the International Monetary Fund (IMF) and World Bank annual meetings in Bangkok.

At the Citi Macro Forum and Standard Chartered Bank's Sovereign Investor Roundtable, he outlined a capital market strategy including further Panda bond issuances, Sukuk and a proposed rupee-denominated, dollar-settled international bond, emphasising lower borrowing costs, longer debt maturities and reduced rollover risks. He said economic growth could reach or exceed 4% this fiscal year.

In a meeting with S&P Global Ratings, the minister highlighted the September bond issuance, strong investor participation and progress under the IMF programme, along with improved tax collections, reserve accumulation and reduced swap and forward liabilities. He noted S&P's emphasis on policy continuity, reform implementation, a lower interest burden and stronger external buffers.

Addressing the MENAP meeting with the IMF managing director, he cited economic growth of 3.7% and the October 7 staff-level agreement. He reaffirmed commitment to targeted, budget-neutral and time-bound subsidies to protect low-income groups, and called for diversified energy sources, deeper regional integration and investment in logistics and food systems.

In a meeting with Asian Infrastructure Investment Bank (AIIB) President Zou Jiayi, the minister identified power transmission and railway modernisation as priorities, with AIIB targeting approval of a transmission project before the end of the year. Discussions covered the Karachi-Rohri section of the ML-1 railway project, possible co-financing with the Asian Development Bank (ADB) and emergency budget support for energy and food security pressures.

With MIGA Managing Director Tsutomu Yamamoto, he said financing terms should reflect Pakistan's improved ratings and renewed market access, expressing satisfaction that MIGA had revised its pricing. The meeting reviewed a hydropower-related case before the UK Supreme Court.

Meeting IMF Deputy Managing Director Nigel Clarke, the minister emphasised political ownership and sustained reform implementation, noting stronger reserves and a declining debt-to-GDP ratio. He also met US State Department Ambassador Yon to review a trade framework agreement, energy diversification, Reko Diq, critical minerals, Boeing aircraft acquisition, digital asset regulation and DFC and EXIM Bank financing.