Finance Minister expects Moody's to upgrade Pakistan's credit rating soon

Federal Minister for Finance and Revenue Muhammad Aurangzeb anticipates that Moody’s Investor Service will soon upgrade Pakistan’s credit rating. 

As per media reports, the federal minister cites the nation's economic improvements and the government's dedication to reforms as reasons for the potential upgrade.

This was discussed during Aurangzeb’s meeting with Moody’s representatives at the World Bank Group-IMF Spring Meetings in Washington DC.

Previously, Moody’s had lowered Pakistan’s local and foreign currency issuer and senior unsecured debt ratings from Caa1 to Caa3, attributing the downgrade to increased liquidity and external risks heightening the probability of default to levels typical of a Caa3 rating.

Factors such as Pakistan’s weak fiscal capacity and high political risks were also considered to limit its credit profile.

However, in February of this year, Moody’s indicated that an upgrade to Pakistan’s rating could occur if there were a substantial and lasting decrease in the government’s liquidity and external vulnerability risks.