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Federal Finance Minister Muhammad Aurangzeb expressed his optimism over the recent developments in Pakistan’s economic landscape, stating that it is a very encouraging sign that the country has returned to a B-minus credit rating. He emphasized that the economic stability achieved thus far must now be carried forward.
While speaking to the media in Lahore, the minister pointed out that inflation has dropped to its lowest level in six decades. Additionally, he highlighted that electricity prices have been reduced, an initiative that was officially announced by the Prime Minister.
Aurangzeb further shared that, just yesterday, it was reported that Pakistan received a record-breaking $4.1 billion in remittances during the month of March—the highest amount recorded in a single month in the country’s history. He expressed hope that Pakistan’s remittances could reach $38 billion by the end of the current fiscal year.
The Finance Minister noted that Fitch Ratings had issued a statement confirming that the economic outlook for Pakistan is stable, and that the country’s credit rating had been updated accordingly. He recalled that during the fiscal year 2022, when the country was facing economic challenges, Pakistan’s rating was downgraded from B-minus to triple C.
However, in July of the previous year, as economic indicators began moving in the right direction—with inflation decreasing, the currency stabilizing, and foreign exchange reserves improving—the rating was upgraded to C-plus. Aurangzeb mentioned that at the time, the rating agency had raised concerns about whether the government would be able to implement the structural reforms it was discussing.
Referring to the latest statement from the rating agency, he explained that these structural benchmarks are now being met. He pointed out that rating agencies usually focus on sustainability, as they want to ensure that an upgrade is lasting and not followed by future downgrades due to economic instability.
Aurangzeb reiterated that returning to a B-minus rating is a very positive step. “We are now back to where we were three years ago,” he said, stressing that this achievement in economic stability should serve as a foundation for continued progress.
He further stated that the B-minus rating has placed Pakistan at a favorable point, but it should not be seen as the final destination. The reform agenda must continue, with the next goal being to secure a stronger B rating.
In conclusion, Muhammad Aurangzeb emphasized that although macroeconomic stability has been achieved in the past, the focus now must shift to sustainable economic growth. This, he said, is essential to steering the economy in a direction that avoids the boom-and-bust cycles—periods of rapid growth followed by economic setbacks—that have characterized Pakistan’s economic history.
