Pakistan has sought Fitch Ratings’ assessment of the requirements for progressing towards the BB sovereign rating, as the government works to lock in cheaper international financing. The discussions took place in Bangkok on the sidelines of the International Monetary Fund and World Bank annual meetings.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, accompanied by State Bank of Pakistan Governor Jameel Ahmad, met Fitch Ratings to discuss Pakistan’s economic performance and sovereign credit outlook, according to a statement issued on Friday.
BB sovereign rating: what the Bangkok meetings covered
In the talks with Fitch, the finance minister highlighted progress in macroeconomic stabilisation, fiscal consolidation and sustained primary surpluses, alongside restored access to international capital markets. The delegation outlined improvements in foreign exchange reserves, exchange-rate stability, inflation management and debt sustainability, reaffirming commitment to the IMF programme, structural reforms and export-led growth.
Earlier, Aurangzeb had also met Moody’s to discuss the country’s economic outlook and the prospects for a further sovereign rating upgrade, as Pakistan courts both major agencies in parallel.
In a separate meeting with Alvarez and Marsal, discussions examined a structure combining a World Bank policy-based guarantee with Multilateral Investment Guarantee Agency coverage. The proposed structure could mobilise approximately $1.5 billion in financing at competitive rates, subject to the available guarantee envelope and transaction structure. The minister emphasised leveraging existing World Bank resources and a Development Policy Operation to avoid delays.
With Deutsche Bank, the discussions covered diversification of funding sources through Sukuk, Panda bonds, rupee-denominated dollar-settled bonds and potential Eurobond tokenisation, as well as debt management and currency diversification.
The finance minister also met the US Treasury’s Under Secretary for International Affairs, Erin Browne, to discuss Pakistan’s economic outlook, reform agenda and external financing strategy. In another meeting, with Canada’s Secretary of State for International Development Randeep Sarai, he urged progress on an investment protection agreement to encourage Canadian investment, with both sides exploring opportunities in agriculture, agrotechnology, livestock and food security.
Why the BB target matters
A sovereign rating upgrade directly affects what Pakistan pays to borrow abroad. Moving towards the BB category would signal to bond investors that the country’s credit risk is falling, which typically lowers the interest rate demanded on new international bonds, including the Sukuk and Panda bonds now under discussion.
The push comes as Pakistan’s external account shows mixed signals. The balance of payments swung to a $4.39 billion deficit in September, even as the government secured a prominent institutional role, with Pakistan set to chair the IMF and World Bank boards in 2027 after 74 years. Industrial production, meanwhile, stalled in August as steel and fertiliser output slumped.
Fitch has not yet indicated a timeline for any rating action. The agency will weigh Pakistan’s fiscal performance, debt dynamics, external financing requirements and resilience to shocks before deciding whether the path to BB is open. For now, Islamabad’s message in Bangkok is that the reform programme stays on track and the financing toolkit is expanding.
The government’s recent appointment of Mariam Kayani as adviser to Pakistan’s IMF executive director forms part of the same effort to strengthen its standing with the multilateral institutions whose assessments shape market confidence.
Original reporting: The Express Tribune. Additional reporting: Business Recorder.
Frequently asked questions
What did Pakistan ask Fitch Ratings?
Finance Minister Muhammad Aurangzeb asked Fitch for its assessment of the requirements for Pakistan to progress towards the BB sovereign rating category, during meetings on the sidelines of the IMF and World Bank annual meetings in Bangkok.
How much financing is Pakistan trying to mobilise?
Around $1.5 billion, through a proposed structure combining a World Bank policy-based guarantee with MIGA coverage, discussed with Alvarez and Marsal.
What new borrowing instruments are under consideration?
Sukuk, Panda bonds, rupee-denominated dollar-settled bonds and potential Eurobond tokenisation, discussed with Deutsche Bank as part of debt management and currency diversification.
