ISLAMABAD (Web-Desk); In a major development that reflects growing global confidence in Pakistan’s economic revival, international credit rating agency S&P Global Ratings has upgraded the country’s long-term sovereign credit rating from CCC+ to B-, while maintaining a stable outlook. This marks a significant step forward for Pakistan as it continues to recover from economic challenges through ongoing reforms.
According to a report by Bloomberg, the rating upgrade comes in response to notable improvements in Pakistan’s macroeconomic fundamentals, driven by fiscal discipline, increased government revenues, and consistent efforts to reduce inflation. S&P’s decision signals a positive assessment of the government’s strategies to stabilize the economy and reflects an international acknowledgment of its reform agenda.
The report notes that Pakistan’s fiscal indicators are expected to improve further over the coming year. The country’s dollar-denominated bonds have already seen a rise in value following the announcement—an early indication of investor optimism.
This is the second credit rating upgrade for Pakistan in recent months. Earlier, Fitch Ratings also revised the country’s rating upwards, citing continued progress on structural reforms under the International Monetary Fund (IMF) programme. Both agencies have pointed to prudent economic management and reform continuity as key factors behind their decisions.
Under the leadership of Prime Minister Shehbaz Sharif, the government has implemented tough but necessary measures aimed at reducing the fiscal deficit, enhancing revenue collection, and restoring macroeconomic stability. The State Bank of Pakistan has also played its part by reducing the policy interest rate to 11% over the past year to support economic growth.
Reacting to the S&P announcement, Prime Minister Shehbaz Sharif expressed satisfaction, terming the development a clear indicator of the country’s accelerating economic stability. He noted that the upgrade from CCC+ to B- reflects growing international trust in Pakistan’s economic direction and will improve the country’s access to international capital markets, reduce borrowing costs, and ease external debt repayments.
The Prime Minister emphasized that key macroeconomic indicators are steadily improving and credited the economic team for their commendable performance. He added that such endorsements from respected global institutions affirm the success of the government’s economic policy direction and provide a foundation for attracting greater foreign investment in the future.
Overall, the S&P upgrade serves as a significant boost for Pakistan’s economic outlook and a strong signal to global markets that the country is firmly on the path to long-term financial stability.
