In a significant development on Tuesday, Finance Minister Muhammad Aurangzeb, accompanied by senior government officials, presented a comprehensive case for Pakistan’s economic recovery and reform momentum to Moody’s Ratings, a leading global credit rating agency.
The high-level engagement included key stakeholders such as Minister of State for Finance Bilal Azhar Kayani, SBP Governor Jameel Ahmed, and officials from major economic ministries. The meeting underscored the government’s efforts to stabilize the economy and unlock future growth.
Key Highlights of the Presentation:
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Inflation Downturn: A sharp decline in inflation figures.
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Policy Rate Cut: Marking the beginning of a new monetary cycle.
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Exchange Rate Stability: Reduced volatility in currency markets.
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Current Account Surplus: A reversal from prolonged deficits.
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Foreign Exchange Reserves: Surpassing $14 billion by end of June.
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Remittance Growth & Exports: Positive indicators of economic resilience.
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The Finance Division’s official statement emphasized that these indicators signal renewed investor confidence and macroeconomic discipline.
Progress on Reforms:
Aurangzeb showcased:
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Successful completion of the final IMF review under the Stand-By Arrangement and the Resilience and Sustainability Facility (RSF).
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Structural reforms including tariff and trade liberalization, expenditure rationalization, and a focus on export-led growth.
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Discussions with the United States on preferential market access for Pakistani goods.
International Financing & Market Re-engagement:
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$1 billion commercial financing from Middle Eastern partners.
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Plans for issuing a Panda Bond.
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Exploring Eurobond and other global debt instruments contingent on improved credit ratings.
Tax Reforms & Revenue Generation:
The finance minister detailed progress in digitizing tax systems, expanding the tax net, and increasing enforcement, achieving a Rs2 trillion revenue delta through autonomous reforms. The government aims to raise the tax-to-GDP ratio to 13–13.5% in the coming years.
Privatization & Structural Changes:
Aurangzeb reiterated Pakistan’s commitment to:
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Privatization of SOEs.
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Restructuring loss-making entities.
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Right-sizing government operations to enhance fiscal space.
The Finance Minister responded to Moody’s queries and reaffirmed that Pakistan’s reform journey is on track, and current macroeconomic stability will lay the foundation for sustainable and inclusive growth.
“We’re confident that rating agencies will recognize the progress made and that it will further strengthen our ability to engage with global financial markets,” said Aurangzeb.
