KARACHI: Pakistan plans to issue Eurobonds in the next fiscal year after securing an ratings from international agencies, announced Finance Minister Mohammad Aurangzeb on Tuesday. Speaking at the launch of the Securities and Exchange Commission of Pakistan’s (SECP) Electronic Mortgage Register, the minister said the economy has stabilised, and regulators and banks must accelerate growth. The minister said he is in contact with , Standard & Poor’s and , expressing optimism about achieving better ratings. However, he said the Eurobond issuance will depend on receiving improved ratings, with a target launch in the next fiscal year. To secure $1 billion in climate financing, Pakistan must present better plans and policies to the IMF, he said, adding that the government is also in discussions with the World Bank and Asian Development Bank regarding climate financing, with negotiations ongoing with the Asian Infrastructure Investment Bank (AIIB). He said he has spoken to the AIIB vice president to seek favourable outcomes. Says interest rate cuts to boost domestic investment The minister hoped that the State Bank’s foreign exchange reserves would reach $13 billion by the end of FY25, sufficient to cover imports for three months. Currently, SBP reserves stand at approximately $11.2bn. The SBP governor indicated that an inflow of $500 million is expected within a week, raising the total to $11.7bn — close to the $13bn target. Given the $98m current account deficit, a 39pc increase in remittances, higher export proceeds and increased foreign direct investment, the possibility of achieving $13bn in reserves has improved, with expectations of meeting the target before the end of FY25. On Monday, the State Bank its policy rate by 250 basis points to 15pc. The finance minister said the interest rate had been reduced to encourage domestic investors. He said the Karachi Interbank Offered Rate has dropped to 13pc, presenting a favourable opportunity for local investors. However, trade and industry representatives are calling for the the interest rates to be brought into single digits. At the same time, financial experts have advised the State Bank to take a cautious approach regarding further cuts. The finance minister said the government is focused on improving taxation to meet targets and is leveraging digitisation to reduce corruption within the Federal Board of Revenue. He also mentioned the ongoing efforts to lower power tariffs, as electricity costs are a significant burden for many middle and lower middle-class families nationwide. Mr Aurangzeb said foreign investors are eager to invest in Pakistan. Recently, the pime minister Saudi Arabia and the UAE to attract investment, with both governments expressing commitments to invest in Pakistan.