Pakistan eyes double-B rating: FinMin

Finance Minister Muhammad Aurangzeb has signalled that Pakistan hopes to reach the double-B band of sovereign ratings on the strength of steady economic gains. Citing an official Ministry of Finance statement issued on Wednesday, he pointed to a fiscal deficit at its lowest in 22 years, three straight years of primary surpluses, and reserves at a record level that can cover three months of imports. The Express Tribune reported these remarks from the minister's meetings in Bangkok.

At the IMF and World Bank gatherings in Bangkok, the minister met investors, rating agencies and multilateral lenders. At a Citi Macro Forum and a Standard Chartered Bank sovereign investor roundtable, he set out plans for further Panda bond issues, sukuk and a rupee-denominated bond that settles in dollars, with the goal of cutting borrowing costs and stretching out maturities. He also said growth might reach 4% or higher this fiscal year.

Talks with S&P Global Ratings covered the September bond issue, strong investor participation and headway on the IMF programme. With the Asian Infrastructure Investment Bank, he identified power transmission and railway modernisation as priorities, while in a separate MIGA meeting he welcomed revised pricing and said financing should reflect better ratings. At the regional MENAP session he cited 3.7% growth and an October 7 staff-level agreement with the IMF.