Pakistan Targets B+ Credit Rating By September 2027 As Economy Stabilizes: Aurangzeb.
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✧ GENERATE BRIEFING
Finance Minister Muhammad Aurangzeb announced that Pakistan is targeting a B+ credit rating by September 2027 Pakistan is targeting an ambitious upgrade to a B+ sovereign credit rating by September 2027, according to Finance Minister Muhammad Aurangzeb. Speaking at the Overseas Investors Chamber of Commerce and Industry (OICCI), Aurangzeb emphasized that maintaining the current macroeconomic and structural reform trajectory could push the country's sovereign rating to unprecedented levels.Highlighting recent momentum including back-to-back upgrades by S&P Global Ratings (to B in July 2026) and Moody’s (to B3 in August 2026) the finance minister noted that a B+ rating would represent the highest sovereign standing in Pakistan's history. He credited this progress to robust foreign exchange reserves, which hit a record $21.44 billion in September 2026, alongside a successful $3 billion Eurobond issuance and a projected GDP growth rate of 4% for FY2027.
Pakistan is targeting an upgrade to a B+ sovereign credit rating by September 2027, Finance Minister Muhammad Aurangzeb said, citing continued macroeconomic stability and structural reforms.
Speaking at the Overseas Investors Chamber of Commerce and Industry (OICCI), Aurangzeb said he was hopeful Pakistan could achieve the milestone by the end of the current fiscal year or during the first quarter of FY2027-28, provided the country maintains its rigorous reform trajectory.
Upward Trajectory in Global Credit Ratings
Pakistan’s sovereign standing has strengthened significantly over the past year following successive evaluations by major international agencies:
- S&P Global Ratings: Upgraded Pakistan to B with a stable outlook in July 2026.
- Moody’s Ratings: Raised the country’s rating to B3 (up from Caa1) in August 2026, maintaining a stable outlook.
Aurangzeb noted that Pakistan has secured three sovereign rating upgrades since April 2025. Achieving a B+ status would mark the highest sovereign rating in Pakistan’s history, with the government harboring a long-term goal of eventually entering the BB rating bracket.
External Sector Strength and Foreign Reserves
The push toward higher credit ratings is supported by tangible improvements in external metrics:
- Record Forex Reserves: SBP-held foreign exchange reserves climbed to a record $21.44 billion in September 2026, comfortably providing roughly three months of import cover.
- Capital Market Re-entry: The government’s successful $3 billion Eurobond issuance served as a major milestone in reducing over-reliance on official bilateral and multilateral financial support.
- FDI and Privatization: Enhanced sovereign ratings, coupled with ongoing structural reforms and upcoming initiatives like the privatization of Pakistan International Airlines (PIA), are expected to catalyze foreign direct investment (FDI).
IMF Program and Growth Outlook
Addressing questions regarding the $7 billion IMF Extended Fund Facility, Aurangzeb stated it was premature to declare whether the current program would be Pakistan’s last. The administration plans to evaluate its external financing vulnerabilities during FY2027 while systematically shrinking its dependence on short-term rollover facilities and balance-of-payments borrowing.
Supported by these stabilization measures, the economy is projected to expand by 4% in FY2027—up from 3.7% in FY2026—while the current account deficit is anticipated to remain anchored within a tight target band of zero to 1% of GDP.
