Pakistan calls for credit rating reform at UN FFD4 summit

July 04, 2025 (MLN): Pakistan delivered a strong message for credit rating reform at the Fourth International Conference on Financing for Development (FFD4), calling for a transformative shift in the global financial system, with the address led by Senator Aurangzeb.

Speaking at the United Nations forum, Pakistan’s Finance Minister emphasized the need for credit rating systems to evolve and reflect not only economic outcomes but also progress, resilience, and reform, as per the press release issued.

Senator Aurangzeb proposed seven key reforms to reshape the global credit rating landscape.

These include the inclusion of climate and disaster risks in rating assessments, as well as the recognition of reform efforts beyond just final outcomes.

He emphasized the importance of factoring in concessional and multilateral financial support, enabling peer-based comparisons among nations, and promoting the development of regional and independent rating agencies.

Additionally, he called for structured and ongoing dialogue between rating agencies and Emerging Markets and Developing Economies (EMDEs).

Lastly, he stressed the need to integrate the Sustainable Development Goals (SDGs) into sovereign credit profiles, ensuring that global ratings reflect a country’s alignment with development and sustainability priorities.

He outlined a vision for a new rating paradigm one that rewards SDG-aligned investments, employs development-linked scorecards, ties concessional finance to SDG metrics, and leverages EMDEs’ own SDG-data platforms.

These reforms, he noted, are essential to unlock capital not just for post-crisis recovery, but for building a future that is green, inclusive, and equitable for all.

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