Pakistan seeks further sovereign rating upgrade in talks with Moody’s

Profit, citing a Finance Ministry statement issued on Wednesday, reported that Finance Minister Muhammad Aurangzeb met Moody's representatives in Bangkok. The talks, held during the 2026 IMF-World Bank Annual Meetings, covered the economic outlook and the scope for another sovereign rating upgrade. Aurangzeb also asked the agency which measures would be needed to secure a stronger rating and how political risks and economic performance feed into its assessments.

The Pakistani side also cited higher reserves held in foreign currency, a current account gap that stayed under control and smaller State Bank forward obligations. Aurangzeb outlined a plan to swap pricey short-term loans for longer-dated financing, keeping total external debt steady. He also stressed that structural reforms and export-led growth will continue beyond the current IMF arrangement.

Earlier this month, Aurangzeb said he anticipated that Pakistan could obtain a 'B+' rating from global agencies during July to September of FY2027-28. At S&P Global Ratings, Pakistan stays at 'B' with a stable outlook dating from July 2026. Moody's, meanwhile, raised the score to 'B3' in August 2026, moving it up from 'Caa1' and assigning a stable outlook as well. Separately, Aurangzeb held talks with OPEC Fund for International Development president Dr Abdulhamid Alkhalifa on financing for infrastructure, including the M-6 motorway where a first tranche has already been approved.