ISLAMABAD: Pakistan’s economy received a major boost on Thursday as S&P Global Ratings upgraded the country’s sovereign credit rating from ‘CCC+’ to ‘B-’ and assigned a stable outlook, citing improved fiscal stability backed by International Monetary Fund (IMF) support.
In its statement, S&P Global said:
“The stable outlook reflects our expectation that Pakistan’s economic recovery and government efforts to increase revenue will stabilize fiscal and debt metrics.”
The agency added that sustained official financing and continued rollover of commercial credit lines would help Pakistan meet its external debt obligations over the next 12 months.
Pakistan Bonds Rally on Upgrade
Following the announcement, Pakistan’s international bonds saw notable gains:
2051 maturity gained 1.6 cents, reaching 84.85 cents on the dollar
2031 and 2036 maturities also rose by around 1 cent
Short-dated maturities posted modest gains
PM Shehbaz Welcomes Rating Improvement
Prime Minister Shehbaz Sharif hailed the development, saying the upgrade reflects economic stabilization and growing investor confidence in Pakistan.
He highlighted that the improved rating will:
Enhance access to international capital markets
Ease pressure on external debt repayments
Boost investor sentiment and credibility
“Pakistan’s macroeconomic indicators are steadily improving, and this positive momentum is being recognized globally,” the premier stated, praising his government’s economic team for their commendable efforts.
