Maps
Magazine

TRADE & ECONOMY

S&P Upgrades Pakistan’s Credit Rating to ‘B-’, Signals Economic Stabilisation on IMF Backing
S&P upgrades Pakistan’s credit rating to ‘B-’ with a stable outlook, citing IMF-backed stability in reserves and finances. Bonds rally as global confidence improves.
ND
by News Desk
2025-07-24
S&P Upgrades Pakistan’s Credit Rating to ‘B-’, Signals Economic Stabilisation on IMF Backing

Global ratings agency S&P Global has upgraded Pakistan’s sovereign credit rating from ‘CCC+’ to ‘B-’ and assigned a ‘stable’ outlook, citing stabilisation in the country’s financial position and foreign reserves, largely due to continued support from the International Monetary Fund (IMF).

"The stable outlook reflects our expectations that continued economic recovery and government efforts to enhance revenue will stabilise fiscal and debt metrics," S&P said in its official statement on Thursday.

S&P noted that Pakistan’s access to sustained official financing and the government's ability to roll over commercial credit lines would be key to maintaining economic stability over the next 12 months.

The market reacted positively to the development. Pakistan’s longer-dated international bonds rallied, with the 2051 maturity jumping 1.6 cents to be bid at 84.85 cents on the dollar, according to Tradeweb data. Bonds maturing in 2031 and 2036 also rose by nearly 1 cent, while shorter-dated bonds posted more modest gains.

This marks the third upgrade by a major ratings agency in recent months. Fitch Ratings elevated Pakistan’s foreign currency credit rating to ‘B-’ in April, crediting the government’s progress in narrowing fiscal deficits. In August 2024, Moody’s also raised Pakistan’s rating to Caa2 from Caa3, changing the outlook to positive from stable.

Finance Minister Muhammad Aurangzeb had recently urged Moody’s to improve Pakistan’s credit profile further to support the country’s return to international capital markets under more favourable conditions. His appeal followed efforts to stabilise macroeconomic indicators, improve external liquidity, and manage external obligations.

The upgrades follow renewed confidence in Pakistan’s economic direction under the current IMF-supported reform program, which has brought greater fiscal discipline and bolstered foreign exchange reserves.

 
Tagged:

IMF

PakistanEconomy

CreditRating

SPGlobal
Share News: