Pakistan could regain B+ rating by end of FY27 if macro stability, reforms hold, says finance minister

Finance Minister Muhammad Aurangzeb told an audience in Karachi on Thursday that Pakistan could be upgraded to B+ by the close of FY27 or during Q1 FY28, provided stability and reform efforts continue, Profit reported. He also said it was too early to see the $7 billion Extended Fund Facility as the final IMF deal. Growth is expected at 4% in FY27, compared with 3.7% in FY26, and the current account gap should stay inside the 0-1% of GDP goal, even as oil prices top $100 per barrel.

Rating agencies have already acted in Pakistan's favour, with S&P holding a B rating and stable outlook since July and Moody's lifting the country to B3 from Caa1 in August. Aurangzeb tied these gains to a stronger external position, pointing to record remittances and central bank reserves that reached $21.44 billion in September. He noted that B+ would be the highest sovereign grade Pakistan has reached in four decades.

Investor numbers on the PSX have more than doubled, reaching 656,218 since March 2024, with 25,281 new investors in September alone. At the gong ceremony for the Naya Nazimabad Apartments REIT listing, Aurangzeb said the offer was oversubscribed about eight times during book-building and 4.3 times in the public portion. Rs60 billion has been financed under the Apna Ghar Programme, with a further Rs340 billion pipeline awaiting disbursement.