Pakistan sets target for ‘B-’ credit rating to re-enter global capital markets

WEB DESK: Federal Minister for Finance and Revenue, Muhammad Aurangzeb, outlined the government’s goal of re-entering international capital markets with a targeted credit rating of ‘B-‘ on Tuesday. This rating is crucial for any financial sector aiming to engage in international markets.

Speaking at the Islamic Chamber of Commerce to the executive committee of the Pakistan Banks Association (PBA), the minister acknowledged the current economic challenges but expressed confidence in managing the situation with the core support of the IMF.

Aurangzeb stressed the importance of focusing on agriculture and supporting initiatives such as the Special Investment Facilitation Council (SIFC).

He emphasised the need for appropriate funding for both the agriculture sector and the IT industry, particularly freelancers. He urged private banks to enhance their financial contributions and take greater responsibility in this regard.

The finance minister also highlighted the need for corporate farming partnerships with SIFC to drive economic growth. He praised the private sector’s proactive role in advancing financial and technological infrastructure and assured that the government is advancing with the IMF draft resolution.

Regarding public-private partnerships, Aurangzeb underscored the importance of collaboration with banks like HBL and NBP to build capacity and foster progress.

In addressing the energy sector, he acknowledged the difficulties posed by additional taxation, high energy costs, and interest rates. While competitive energy tariffs are not yet available, the government is striving to make progress.

Aurangzeb concluded by calling on banks to concentrate on agriculture, finance, and data collection. He announced that the International Finance Corporation (IFC) will require banks to present their updates and initiatives in the coming week.

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