Pakistan targets B+ credit rating, longer-term debt: Muhammad Aurangzeb

Finance Minister Muhammad Aurangzeb told Bloomberg TV during the Bangkok gathering of the IMF and World Bank that Pakistan will not rush into overseas fundraising this fiscal year. He said the country has no immediate need for global borrowing to cover its external financing needs. Pakistan returned to international markets after a four-year break, with a $750m private bond in April followed by a $3bn Eurobond sale about three weeks ago that drew bids worth twice the offering.

Officials intend to swap a portion of short-term foreign liabilities for longer-dated ones across a two-to-three-year horizon, leaving the total external stock unchanged. Panda bonds worth $250 million have been sold so far under a $1bn plan, and further sales are lined up. Aurangzeb noted three upgrades to the sovereign rating since April of last year, placing it in the B category, with B-plus possible by next fiscal year's opening if gains continue.

Reserves reached a record $21.4bn a few weeks back, covering about three months of imports, with much of the gain coming from market purchases of foreign exchange rather than new borrowing. Officials expect growth to top 4% this fiscal year after 3.7% last year, and tax collection targets were met in the July-September quarter. Authorities are tracking possible inflation and growth effects from the Middle East conflict, which is still under way.