S&P Global has upgraded Pakistan’s sovereign credit rating from ‘CCC+’ to ‘B-’ and assigned a ‘stable’ outlook, citing improved financial conditions and stronger foreign reserves, supported by assistance from the International Monetary Fund (IMF).

In its official statement, S&P stated, “The stable outlook reflects our expectation that ongoing economic recovery and the government’s efforts to boost revenue will help stabilize fiscal and debt indicators.”

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The agency expressed optimism that Pakistan will maintain access to official financing, which will allow it to meet its external debt obligations and roll over its commercial credit lines in the coming year.

According to brokerage firm Arif Habib Limited (AHL), the last time Pakistan held a ‘B-’ rating was in July 2022, though it then carried a negative outlook. The current upgrade reflects growing international confidence in the country’s macroeconomic trajectory.