Pakistan briefs Moody’s on economic recovery, reform progress 

ISLAMABAD: Finance Minister Muhammad Aurangzeb on Tuesday briefed global credit rating agency Moody’s on Pakistan’s economic recovery and reform plans, presenting what the Finance Division described as “compelling evidence” of stabilisation and growth.

Aurangzeb was joined by Minister of State for Finance Bilal Azhar Kayani, State Bank Governor Jameel Ahmed, and senior officials. The team shared updates on key indicators: falling inflation, a recent cut in the policy rate, a stable exchange rate, a current account surplus, and a rise in foreign exchange reserves, which crossed $14 billion in June.

Improved remittances and exports were also cited as signs of recovery and investor confidence.

Aurangzeb told the Moody’s team that Pakistan had completed the final review of the IMF’s Stand-By Arrangement and secured its second loan tranche. He said the country was also making progress under the Resilience and Sustainability Facility (RSF). These steps, he said, have restored trust in the country’s economic direction.

The minister detailed reforms aimed at long-term stability, including fiscal changes in the latest budget, trade and tariff liberalisation, and cost-cutting efforts. He said talks with the United States on tariff concessions were moving forward. 

Pakistan’s return to global markets was also highlighted. Aurangzeb pointed to $1 billion in commercial financing from the Middle East and shared plans for issuing a Panda bond, with possible future Eurobond launches. 

On revenue, he said the government was focused on expanding the tax base, improving enforcement, and using digital tools to boost the tax-to-GDP ratio. This year’s Rs2 trillion revenue increase, he noted, came through domestic efforts. 

Aurangzeb reaffirmed Pakistan’s commitment to reforms, including privatisation and restructuring of state-owned firms, and said improving indicators should support a better credit outlook.

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