Muhammad Aurangzeb highlights fiscal consolidation, stronger external buffers and IMF commitments as Pakistan discusses its sovereign credit outlook with Fitch Ratings in Bangkok.
ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and the Governor of the State Bank of Pakistan (SBP) met representatives of Fitch Ratings on the sidelines of the World Bank Group–IMF Annual Meetings 2026 in Bangkok, Thailand, to discuss Pakistan’s economic performance and sovereign credit outlook.
During the meeting, the finance minister highlighted Pakistan’s restored access to international capital markets, fiscal consolidation efforts and sustained primary budget surpluses. He also briefed Fitch on inflation trends, monetary policy, exchange rate stability and the country’s contained current account deficit.
The delegation outlined improvements in Pakistan’s external position, including reserve accumulation, reduced forward liabilities and stronger external buffers intended to help the economy withstand potential financial and economic shocks.
Pakistan highlights debt sustainability improvements
The Pakistani delegation also highlighted improvements in debt sustainability, declining debt-servicing costs and longer borrowing maturities. It pointed to bilateral rollover assurances as an important element of the country’s external financing arrangements.
Aurangzeb reaffirmed the government’s commitment to completing the International Monetary Fund (IMF) programme and pursuing structural reforms to strengthen macroeconomic stability. The delegation also emphasised the importance of promoting export-led growth to improve Pakistan’s external account position and support sustainable economic expansion.
Discussions further covered Pakistan’s trade and investment engagement with the United States, reflecting the government’s efforts to strengthen international economic ties and attract investment.
Finance minister seeks pathway to BB rating category
A key focus of the meeting was Pakistan’s potential progress towards the BB sovereign credit rating category. Aurangzeb sought Fitch Ratings’ assessment of the requirements and policy measures necessary for the country to advance towards that rating level.
The discussions come as Pakistan seeks to consolidate recent gains in macroeconomic stability, strengthen its external financing position and improve investor confidence through fiscal discipline and structural reforms.
Progress towards a higher sovereign credit rating would depend on Fitch’s assessment of Pakistan’s economic and fiscal performance, debt dynamics, external financing requirements and resilience to potential shocks. The meeting provided an opportunity for the government to present its policy priorities and discuss the conditions associated with further improvements in the country’s credit profile.