Pakistan credit rating has been upgraded by S&P Global from ‘CCC+’ to ‘B-‘ with a stable outlook. The agency stated on Thursday that IMF support has helped stabilise the country’s finances and foreign reserves.
S&P explained that the stable outlook shows expectations of an economic rebound. It also reflects confidence that government measures to boost revenue will strengthen fiscal and debt indicators. The agency expects official financing to remain steady, enabling Pakistan to meet its external obligations. It further predicted that commercial credit lines will continue to be rolled over in the next 12 months.
Following the Pakistan credit rating upgrade, international bonds of longer maturity rallied. The 2051 bond rose by 1.6 cents, trading at 84.85 cents on the dollar, according to Tradeweb data. The 2031 and 2036 bonds gained around 1 cent each, while short-dated securities also recorded smaller increases.
Prime Minister Shehbaz Sharif welcomed the improvement in Pakistan credit rating, calling it evidence of ongoing economic stabilisation. He said the upgrade would ease pressure on external debt repayments and improve access to global capital markets.
The prime minister emphasised that the country’s macroeconomic indicators are on an upward trajectory. He noted that international financial institutions and rating agencies are acknowledging this positive progress.
Highlighting the broader impact, Shehbaz Sharif remarked that the improved Pakistan credit rating will rebuild investor confidence in the economy. He praised his government’s economic policies, saying they are now gaining international appreciation.
Shehbaz commended his economic team, crediting their performance as a key factor in achieving this milestone. He called the upgrade a reflection of Pakistan’s strengthening economic foundations and a sign of better times ahead.
