Finance Minister Muhammad Aurangzeb met Moody’s in Bangkok to discuss Pakistan’s economic outlook and prospects for a sovereign credit rating upgrade. He highlighted improved fiscal and external indicators, rising foreign exchange reserves, a contained current account deficit and lower State Bank forward liabilities. Aurangzeb also outlined plans to replace costly short-term debt with longer-maturity financing without increasing the external debt stock. He reaffirmed Pakistan’s commitment to structural reforms and export-led growth, and sought Moody’s views on achieving a stronger rating. Pakistan is rated ‘B’ by S&P Global Ratings and ‘B3’ by Moody’s, both with stable outlooks.

Pakistan’s inflation rate is projected to rise to 9.9% in 2027, while economic growth is expected to slow to 3.5%, according to the IMF’s latest World Economic Outlook. Inflation is forecast at 7.1% in 2026, up from 4.5% in 2025. GDP growth is projected to improve to 3.6% in 2026 from 3.2% in 2025, before easing next year. The current account is expected to remain around balance in 2026 and move to a deficit equal to 1% of GDP in 2027, after recording a 0.5% surplus in 2025. Unemployment is forecast to fall from 7.1% in 2025 to 6.9% in 2026 and 6.5% in 2027.

Finance Minister Muhammad Aurangzeb says Pakistan plans to refinance some short-term external debt into longer maturities over the next two to three years to reduce rollover risks. Speaking to foreign media, he said the country aims to keep its total external debt—estimated at close to $100 billion—broadly unchanged while diversifying financing and extending repayment periods. Aurangzeb added that Pakistan is “not in a rush” to issue bonds this fiscal year.