Global ratings agency S&P has upgraded Pakistan’s sovereign credit rating from ‘CCC+’ to ‘B-’ with a stable outlook, citing improved fiscal stability and foreign exchange reserves driven by International Monetary Fund (IMF) support.
The agency said the revision reflects optimism over Pakistan’s gradual economic recovery, improved revenue efforts, and consistent official financing. It expects the government to maintain momentum in fiscal consolidation while managing debt metrics and meeting external financing needs without disruptions.
S&P’s statement highlighted that Pakistan is likely to roll over its commercial credit lines in the coming year, supported by enhanced access to multilateral funding.
Following the upgrade, investor confidence received a boost as Pakistan’s long-term international bonds surged. The 2051 maturity bond rose by 1.6 cents, trading at 84.85 cents per dollar. Bonds maturing in 2031 and 2036 also recorded gains, while shorter-term bonds showed modest improvement.
This development follows earlier upgrades by Moody’s and Fitch. Moody’s had raised Pakistan’s rating to Caa2 from Caa3 in August 2024, with a positive outlook due to signs of macroeconomic recovery and improved external liquidity. Fitch, in April, also upgraded Pakistan’s rating to ‘B-’, acknowledging growing confidence in the country’s efforts to reduce fiscal deficits.
Finance Minister Muhammad Aurangzeb recently urged global agencies like Moody’s to further revise Pakistan’s credit standing, aiming to ease the country’s return to international capital markets under favourable terms.
Related Posts
