Pakistan’s Economy Shines: Reform Gains Boost Sovereign Credit

Today, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb met with a delegation from S&P Global Ratings to review Pakistan’s sovereign credit profile and economic reforms.

Meeting with S&P Global Ratings

During the session, the minister welcomed Mr. YeeFarn Phua, Director of Sovereign Ratings Vendors, and Ms. Giulia Filocca, Associate Director, who travelled to discuss the country’s macro‑economic outlook and reform progress.

Macro‑Economic Fundamentals Improve

First, the minister emphasized that Pakistan’s growth rate has accelerated, fiscal discipline has tightened, and debt sustainability has strengthened. Consequently, inflation has eased, foreign reserves have climbed, and investor confidence has rebounded, even amid regional and global challenges.

Debt Profile Strengthens

Next, he highlighted the steady drop in the debt‑to‑GDP ratio and the slowest rise in central government debt in 15 years. Furthermore, the government has managed liabilities through buybacks and extended the omen of domestic bonds, while maintaining historically low deficits and record primary surpluses. These measures reinforce fiscal sustainability and bolster sovereign credit fundamentals.

Structural Reform Agenda

Moreover, the delegation was briefed on the reform agenda that covers taxation, energy, state‑owned enterprises, privatization, governance, and public financial management. The minister confirmed that reforms under the IMF’s Extended Fund Facility and Resilience and Sustainability Facility remain on track, and that Pakistan continues to work closely with the IMF, World Bank, ADB, and other partners.

Women Entrepreneurship Focus

Separately, the minister met with the Women Chamber of Commerce and Industry Peshawar, led by President Ms. Quratulain, Senior Vice President Ms. Zaara Imtiaz, and Secretary General Ms. Saba Hidayat. The chamber presented initiatives to boost women entrepreneurship through advocacy, skills training, startup incubation, and support for sectors such as handicrafts, textiles, and IT.

Consequently, the minister reiterated the government’s commitment to create an enabling environment for women-led businesses. He stressed that improving access to finance, digital literacy, and market linkages will drive inclusive growth. Additionally, he noted that social protection payments are increasingly channeled through digital wallets to empower women financially.

Finally, the minister encouraged the chamber to champion upskilling in IT, freelancing, and digital services, enabling young women to compete globally. Both sides agreed to maintain close engagement to strengthen women’s economic participation and promote private sector‑led growth.