Moody's airs concern over low collection by FBR

ISLAMABAD: Finance Minister Senator Mohammad Aurangzeb on Tuesday presented “compelling evidence” of macroeconomic recovery to Moody’s, as Pakistan expects the credit rating agency to further improve the country’s rating during the current fiscal year.

The Moody’s Credit Rating Agency has expressed concern over low taxation, while Pakistani authorities have reiterated their commitment to staying on course in consolidating macroeconomic stability.

The Ministry of Finance said in a statement that Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a virtual engagement with Moody’s Rating Agency at the Finance Division to provide an in-depth briefing on Pakistan’s macroeconomic outlook, reform agenda and financial stability.

He was accompanied by Minister of State for Finance Bilal Azhar Kayani, Governor State Bank of Pakistan, and senior officials from the Finance Division, Revenue Division, and other relevant ministries.

During the session, the finance minister apprised the Moody’s team of the significant strides Pakistan has made in stabilising its economy and laying the foundations for sustainable and inclusive growth. Aurangzeb and his team presented compelling evidence of macroeconomic recovery, including a sharp reduction in inflation, a cut in the policy rate, stabilisation of the exchange rate, a current account surplus, and a surge in foreign exchange reserves—crossing $14 billion by the end of June. Improvements in remittance inflows and export performance were also cited as signs of resilience and renewed investor confidence.

The finance minister also addressed queries from the Moody’s team and reiterated Pakistan’s commitment to staying the course on macroeconomic reforms, including in areas of privatisation, restructuring of state-owned enterprises (SOEs), and right-sizing of government.