S&P Global Ratings raised Pakistan’s sovereign credit rating from ‘CCC+’ to ‘B-‘ on Thursday.
This reflects improved fiscal conditions and strengthened foreign exchange reserves, underpinned by ongoing International Monetary Fund (IMF) support.
Read more: Pakistan’s foreign exchange reserves rebound to nearly $20 billion
The rating agency, S&P Global, cited Pakistan’s progress in stabilizing its public finances and balance of payments. The upgrade shows markets confidence that the government’s revenue -improving measures and prudent fiscal management will sustain debt metrics in the foreseeable future.
S&P noted Pakistan’s continued access to official financing channels as a key factor mitigating near-term refinancing risks. The agency experts Pakistan will be well-positioned to service its external obligations and roll over commercial credit lines over the coming year.
Read more: Dollar rate today: Pakistani rupee gains slightly against the US dollar
The stable outlook suggests that S&P expects no immediate rating changes, conditional on Pakistan maintain reform momentum and stable macroeconomic performance.
Risk remains around political uncertainty and security challenges, however.
