Inflation has declined while the pace of central government debt growth has slowed to its lowest level in around 15 years, Finance Minister Muhammad Aurangzeb said during a meeting with an S&P Global Ratings delegation.
The S&P Global Ratings delegation was led by Director Sovereign Ratings YeeFarn Phua and Associate Director Sovereign Ratings Giulia Filocca.
Both sides discussed Pakistan’s sovereign credit profile, macroeconomic outlook, and progress under the government’s economic reform agenda.
The finance minister said Pakistan’s macroeconomic fundamentals have improved significantly due to stronger economic growth, sustained fiscal consolidation, improved debt sustainability, and a more resilient external sector supported by the pro-growth and fiscally responsible Federal Budget for FY2026-27.
He said prudent economic management and continued structural reforms have strengthened macroeconomic stability which lowered inflation, improved foreign exchange reserves, renewed investor confidence, and continued improvement in key fiscal and external indicators.
Aurangzeb also highlighted improvements in Pakistan’s public debt profile, including a continued decline in the debt-to-GDP ratio, the slowest pace of central government debt growth in around 15 years, active liability management and debt buybacks, a longer maturity profile for domestic debt, historically low fiscal deficits, and record primary surpluses.
He said stronger revenue collection and prudent expenditure management have reinforced fiscal sustainability and strengthened Pakistan’s sovereign credit fundamentals.
He added that reforms under the IMF’s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) remain on track, with successful programme reviews and timely implementation of key reform measures. He also highlighted Pakistan’s continued engagement with the IMF, World Bank, Asian Development Bank, and other development partners.
The S&P Global Ratings delegation acknowledged Pakistan’s progress in improving macroeconomic stability and appreciated the government’s commitment to fiscal discipline, debt sustainability, external resilience, and structural reforms.
Both sides also discussed Pakistan’s medium-term economic outlook, reform priorities, and measures to further strengthen the country’s sovereign credit profile.
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