Global Confidence Restored as S&P Upgrades Pakistan’s Credit Rating to ‘B’
Pakistan’s Rating Reaches a Nine-Year High Following Economic Reforms and Growth in Foreign Exchange Reserves
Islamabad: International credit rating agency Standard & Poor’s (S&P) has recognised Pakistan’s economic recovery and fiscal discipline by upgrading the country’s credit rating from ‘B-’ to ‘B’, while maintaining a stable outlook.
The development reflects growing confidence among international financial institutions in Pakistan’s economic recovery. The country has regained this rating after nearly nine years, having last held it during 2016–17.
Economic Reforms Receive International Recognition
Adviser to the Finance Minister Khurram Schehzad confirmed the development on the social media platform X, saying the rating improvement was the result of the government’s sustainable economic policies.
Key Reasons Behind the Rating Upgrade
Institutional and Economic Reforms: Continued implementation of long-term structural reforms across all key sectors.
Fiscal Stability: Strict fiscal discipline and a significant reduction in the budget deficit.
Foreign Exchange Reserves: Continued growth in foreign exchange reserves and improvement in the external payments system.
“The stable outlook reflects expectations that continued reforms will further strengthen sustained economic growth and fiscal discipline.”
— Khurram Schehzad, Adviser to the Finance Minister
Rating Upgrade to Strengthen Investor Confidence: Experts
According to financial experts, S&P’s rating upgrade signals progress in addressing Pakistan’s economic challenges.
Experts believe the improved rating will:
- Facilitate Pakistan’s access to financing in international markets.
- Restore the confidence of foreign direct investors.
- Improve the prospects for sustainable economic growth.