Pakistan Presents Strong Case for Economic Recovery in Moody’s Briefing

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Finance Minister Muhammad Aurangzeb has presented what he described as “compelling evidence” of Pakistan’s economic rebound during a strategic briefing with Moody’s Ratings, a major international credit rating agency. The engagement aimed to reinforce Pakistan’s position as a reform-driven economy committed to fiscal stability and growth, supported by rising reserves, a cooling inflation trend, and increasing investor confidence.

Joined by Minister of State for Finance Bilal Azhar Kayani, State Bank of Pakistan (SBP) Governor Jameel Ahmad, and senior officials, Aurangzeb laid out Pakistan’s recent economic milestones. He emphasized the country’s progress in meeting macroeconomic targets, including a significant drop in inflation, a cut in the SBP’s policy rate, and the stabilization of the Pakistani rupee. Notably, foreign exchange reserves surpassed $14 billion by the end of June, one of the highest levels in recent years while the current account posted a surplus, all signs of what Aurangzeb termed “renewed macroeconomic discipline.”

The briefing also focused on external sector resilience. Improved export performance and a rebound in overseas remittances were highlighted as key drivers of economic momentum. These positive indicators, along with the successful completion of key reviews under the International Monetary Fund (IMF) programme, signal Pakistan’s intention to reduce reliance on emergency funding and instead pursue self-sustaining growth. Aurangzeb framed these achievements not as isolated gains but as results of a broader strategy that includes structural reforms, tighter fiscal oversight, and pro-investment policy signals. The goal, he reiterated, is to build a durable, export-led economy guided by private sector efficiency and reduced state interference.

From a policy perspective, the government’s tone was clear: Pakistan is not seeking temporary fixes but long-term economic stability through governance reform and responsible financial management. With the tax-to-GDP (Gross Domestic Product) ratio targeted to rise through digital enforcement and institutional restructuring, Islamabad is aligning itself with center-right economic principles of accountability, competitiveness, and regulatory clarity. The message to Moody’s and the global market was unmistakable Pakistan’s recovery is real, its reform momentum is gaining pace, and it now seeks to capitalize on improved fundamentals by securing better credit ratings, lowering borrowing costs, and attracting long-term capital to sustain its economic transformation.