Federal Minister for Finance and Revenue, Muhammad Aurangzeb, reaffirmed Pakistan’s commitment to macroeconomic stability and inclusive growth during a virtual meeting held with representatives of S&P Global Ratings. The Zoom session was a key component of the ongoing Pakistan Sovereign Ratings Review and focused on the nation’s economic reform trajectory and prospects for improved credit ratings.
Joined by his financial team, the Finance Minister delivered a detailed overview of the government’s comprehensive economic agenda. He emphasized that Pakistan is firmly committed to long-term, sustainable growth by implementing structural reforms and boosting exports. Core to the strategy are policy reforms in taxation, energy, privatization of state-owned enterprises (SOEs), and improvements in public financial management. The government is also working to rightsize government operations and apply more active debt management strategies to strengthen fiscal discipline.
Aurangzeb highlighted the relative stability achieved in key economic indicators over the past year, including a steady decline in inflation and a well-controlled current account deficit (CAD). These improvements, he noted, have positively influenced the overall economic outlook and contributed to restoring investor confidence.
One of the session’s key points was the country’s progress in achieving a primary budget surplus and a current account surplus. According to the Finance Minister, Pakistan’s external financing portfolio remains stable and is supported by projected foreign exchange reserves of $14 billion by the end of June. These projections are backed by strong remittances, declining global oil prices, and anticipated institutional and trade-related inflows.
Aurangzeb credited fiscal discipline and close coordination between the federal and provincial governments for this macroeconomic progress. He underscored a series of institutional reforms, including the implementation of a National Fiscal Pact, activation of the National Tax Council, and the introduction of an agricultural income tax. These steps reflect a unified, cross-government resolve to expand the tax base, improve resource allocation, and enable long-term economic growth.
He further shared that the tax-to-GDP ratio is forecasted to reach 10.6 percent by the end of June, aligning with the government’s target of increasing it to 13 percent under the ongoing 37-month Extended Fund Facility (EFF) with the International Monetary Fund (IMF). A significant move in this direction was the separation of the Tax Policy Office from the Federal Board of Revenue (FBR), a reform intended to create tax policies driven by economic value rather than administrative convenience.
Sharing highlights from his recent participation in the World Bank/IMF Spring Meetings in the United States, the Finance Minister recounted a series of over 70 high-level engagements in just six days. He met with development finance institutions (DFIs), global investment banks, bilateral and multilateral partners, rating agencies, think tanks, and media representatives. According to Aurangzeb, feedback from these interactions was largely positive, with stakeholders expressing broad support for Pakistan’s economic reforms and stability measures.
Importantly, these institutions also emphasized the need for Pakistan to maintain its reform momentum, solidify macroeconomic gains, and institutionalize economic stability. Many international partners reiterated their readiness to continue supporting Pakistan on this path.
This direct engagement with S&P Global represents the government’s proactive effort to improve the country’s credit rating and signal confidence in Pakistan’s economic direction.