Pakistan’s economy received a positive signal from S&P Global, which upgraded the country’s sovereign credit rating to “B-” from “CCC+” and assigned a stable outlook.
S&P cited improving foreign reserves, enhanced fiscal management, and IMF-backed reforms as key factors behind the rating boost.
“The stable outlook reflects expectations of a sustained economic recovery and stronger government revenues, which should help stabilize debt and fiscal indicators,” the rating agency said.
It added that ongoing access to official financing would allow Pakistan to meet external debt payments and smoothly roll over commercial credit lines during the coming year.
Brokerage firm Arif Habib Limited (AHL) noted that Pakistan last held a B- rating in July 2022, but at that time with a negative outlook.
The latest upgrade could enhance investor confidence, support foreign investment inflows, and lower the risk premium on Pakistan’s sovereign bonds.