In a major boost to investor confidence, S&P Global has upgraded Pakistan’s sovereign credit rating from ‘CCC+’ to ‘B-’ while assigning a stable outlook, signaling a more positive financial trajectory for the country.
The global rating agency highlighted improvements in Pakistan’s foreign exchange reserves and financial position, aided by continued International Monetary Fund (IMF) support.
“The stable outlook reflects our expectation that ongoing economic recovery and the government’s revenue-boosting efforts will help stabilize fiscal and debt indicators,” S&P stated.
It also expressed confidence that official financing channels will remain open, enabling Pakistan to meet external debt obligations and roll over commercial credit lines in the next 12 months.
According to brokerage house Arif Habib Limited (AHL), this marks Pakistan’s return to the B- rating level last seen in July 2022, when the outlook was negative.
The upgrade is expected to improve Pakistan’s access to global capital markets, reduce borrowing costs, and reinforce investor sentiment.
