Pakistan seeks US tariff access, taps Mideast funds as it re-engages global markets
Pakistan has 'successfully arranged $1 billion in commercial financing from the Middle Eastern region' and plans to launch an inaugural Panda bond while exploring a Eurobond and other international debt markets as its credit ratings improve, Aurangzeb said during a briefing with the Moody's rating agency on Tuesday.
'These changes, together with improving macroeconomic indicators and the reform momentum, would be positively acknowledged by rating agencies, further strengthening Pakistan's case to tap international markets and deepen its external sector stability,' the finance minister said.
The virtual session, attended by the State Bank governor and senior officials, also highlighted 'ongoing discussions with the United States on preferential tariff access,' which the minister described as 'making encouraging headway.'
The finance team cited key progress under Pakistan's IMF-backed economic plan. Recent reforms include 'prudent fiscal measures' in the new budget, trade and tariff liberalization for export-led growth, and steps to rationalize spending.
Aurangzeb also pointed to signs of recovery, including a sharp drop in inflation, a lower policy rate, a stable exchange rate, a current account surplus and foreign reserves rising above $14 billion by the end of June.
He underlined plans to raise the tax-to-GDP ratio to 13–13.5 percent in the coming years through technology-driven tax administration, digitization and tougher enforcement.
Under the prime minister's direct oversight, he said, a 'Rs. 2 trillion revenue delta' was achieved this year through 'autonomous efforts.'
Despite repeated external and fiscal pressures, Pakistan says it hopes improved ratings and renewed investor confidence will lower borrowing costs and keep the economy on a sustainable path.
'Pakistan is ready to carry forward this journey of resilience, reform, and recovery to unlock long-term, inclusive, and export-oriented economic growth,' Aurangzeb said.
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