KARACHI: Pakistan is seeking to lift its sovereign credit rating into the double-B category, Finance Minister Muhammad Aurangzeb told S&P Global Ratings on Wednesday, as the country builds on improving economic fundamentals and its return to international bond markets.

The ambition follows a series of credit rating upgrades and a $3 billion Eurobond issuance in September, reflecting Pakistan’s efforts to restore investor confidence after years of economic instability. A higher rating could help the country secure international financing on more favorable terms and reduce its reliance on costly borrowing.

Pakistan is currently implementing structural reforms under a $7 billion International Monetary Fund (IMF) program while seeking to diversify its financing sources, lower borrowing costs and reduce its dependence on repeated external bailouts.

“The Finance Minister highlighted the successful September bond issuance, strong investor participation and progress under the IMF program,” the finance ministry said in a statement following Aurangzeb’s meeting with S&P representatives on the sidelines of the IMF-World Bank Annual Meetings in Bangkok.

“He also outlined Pakistan’s ambition to enter the double-B rating category through sustained economic improvements,” it added.

S&P upgraded Pakistan’s long-term sovereign credit rating to B from B- in July, maintaining a stable outlook and citing stronger institutional stability, progress on reforms under the IMF program and an improvement in the country’s external financial position.

The current B rating indicates that Pakistan remains vulnerable to adverse economic and financial conditions, although it has the capacity to meet its financial obligations.

Moving into the double-B category would signal an improvement in creditworthiness, though it would still fall below investment grade, which begins at BBB- on S&P’s scale.

During Wednesday’s meeting, Aurangzeb briefed S&P representatives on improved tax collections, reserve accumulation and reduced swap and forward liabilities, while reaffirming the government’s commitment to fiscal discipline and export-led growth.

The ministry said S&P had emphasized policy continuity, implementation of reforms, a lower interest burden and stronger external financial buffers as important considerations for Pakistan’s sovereign credit rating.