Vowing to secure a ‘Single B’ credit rating this fiscal year, Pakistan’s Finance Minister Muhammad Aurangzeb warned on Wednesday that the country’s surging population was a “time bomb” that had already detonated, urging swift reforms to address the economic strain.
Speaking at the 8th Edition of The Future Summit in Karachi, he outlined a comprehensive agenda, covering key economic challenges, fiscal policies, and necessary reforms to stimulate growth.
He said that the credit ratings were upgraded during the first quarter of the fiscal year, indicating that the economic trajectory was right.
“It is hoped that we will move towards a ‘Single B’ during this fiscal year so that we can rejoin the comity of nations,” the FinMin said adding, “Our fiscal and current account deficits have turned into surpluses.”
According to a brokerage report, Pakistan’s credit ratings are expected to improve further due to rising foreign exchange reserves, aiding future bond issuance in global capital markets.
Due to significant improvements in the external account, a steep decline in inflation, and a reduction in interest rates, the nation’s economy is steadily stabilising.
Two rating agencies have already upgraded Pakistan’s rating by one notch, as a first indication of external stability, citing the country’s improving macroeconomic conditions supported by the new International Monetary Fund’s $7 billion loan programme.
Pakistan’s long-term issuer rating was raised by one notch to CCC+ by Fitch in July, and then to Caa2 by Moody’s in August.
