S&P Global Rating Agency Appreciates Pakistan’s Fiscal Measures to Improve Economy

Finance Minister Muhammad Aurangzeb held a meeting with the delegation of Standard & Poor’s (S&P) Global Rating Agency led by Directors of Sovereign & International Public Finance Ratings Yee Farn Phua and Andrew David Wood at the Finance Division today. The delegation from S&P Global appreciated the fiscal measures adopted by the Government of Pakistan and acknowledged the improvement in economic indicators. The Finance Minister welcomed the S&P delegation and gave an update on Pakistan’s current economic situation. He highlighted the successful completion of the 9-month Stand-By Arrangement (SBA) with IMF and the improving macroeconomic indicators of Pakistan. Minister for Finance & Revenue highlighted some of the indicators including the building up of foreign exchange reserves to USD 9.4 billion, robust performance of the stock exchange, declining trend of inflation rates with CPI inflation clocking in at 12.6 percent in June 2024, and increase in foreign remittances by 7.7 percent as compared to last year. He emphasized the Government’s efforts to broaden the tax base as tax collection during FY 2024 increased by 30 percent as compared to FY 2023 and also to further improve the tax-to-GDP ratio. The ongoing reforms in the energy sector and State-Owned Enterprises including privatization were discussed. Furthermore, the Federal Minister underscored the confidence shown by multilateral institutions through their financing of various projects in Pakistan. Aurangzeb also informed the delegation that Pakistan is currently holding talks with the IMF on a new medium-term program to support Pakistan’s economic reform agenda. The Finance Secretary reiterated the stable yet optimistic outlook and elaborated on the economic reform agenda of the government, which is reflected in the FY 25 budget.