Washington, D.C.: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a key meeting with Fitch Ratings on the sidelines of the World Bank–IMF Spring Meetings, reaffirming Pakistan’s commitment to stabilizing its credit profile and deepening its engagement with global capital markets.
Senator Aurangzeb expressed gratitude for Fitch’s continued assessment of Pakistan’s economic trajectory, noting the agency’s recent decision to maintain the country’s B- long-term foreign currency issuer default rating. “This reflects a measured recognition of our reform momentum and fiscal discipline,” he said, adding that the rating underscores the importance of sustained policy implementation.
Fitch affirms Pakistan’s credit rating at ‘B-’ with stable outlook
The minister also confirmed that Pakistan has reached a Staff Level Agreement with the IMF for the third review under the Extended Fund Facility (EFF) and the second under the Resilience and Sustainability Facility (RSF). “These milestones are critical to unlocking further disbursements and reinforcing market confidence,” he emphasized.
In a strategic push to diversify funding sources, Aurangzeb outlined the government’s plan to maintain a robust presence in international markets through instruments such as Panda Bonds, Eurobonds, international Sukuk, and ESG-linked bonds. “Our goal is not just to meet obligations — but to rebuild investor trust and position Pakistan as a credible, sustainable borrower,” he said.
The Finance Ministry confirmed that external financing arrangements are now in place to meet all FY2026 external debt obligations, signaling a shift from crisis management to structured debt sustainability.
The meeting comes as Pakistan navigates a fragile macroeconomic recovery, with inflation easing and foreign reserves stabilizing — albeit still at vulnerable levels. Fitch’s stable outlook, while cautious, offers a modest vote of confidence as the government pushes ahead with structural reforms and market-based financing.
