Pakistan is optimistic about Moody’s rating upgrade, buoyed by the positive trajectory of its economic indicators.

Federal Minister for Finance and Revenue Muhammad Aurangzeb expects that Moody’s Investor Service (Moody’s) will upgrade Pakistan’s credit rating soon, reflecting the country’s improved economic fundamentals and the government’s commitment to reforms.

The remarks come during Aurangzeb’s meeting with Moody’s representatives in Washington, D.C., on the sidelines of the World Bank Group-IMF Spring Meetings.

At that time, the credit rating agency justified its decision to downgrade the ratings, citing its assessment that Pakistan’s liquidity and external position were becoming increasingly fragile, thereby raising default risks to a level consistent with a Caa3 rating.

It said the country’s feeble fiscal strength and elevated political risks also constrain its credit profile.