Moody's Upgrades Pakistan's Sovereign Rating to B3 on Stabilisation
Moody's raises Pakistan's sovereign rating to B3 from Caa1, citing durable debt affordability and macroeconomic stability.
Global ratings agency Moody's has upgraded Pakistan's sovereign rating to 'B3' from 'Caa1', signalling a more positive assessment of the country's economic trajectory. The decision, announced on Monday, reflects what the agency describes as improvements in governance and a reduction in external vulnerability risks.
In a statement accompanying the upgrade, Moody's expressed confidence that the recent improvement in Pakistan's debt affordability would prove durable, underpinned by sustained macroeconomic stability. The agency has maintained a 'stable' outlook on the rating, suggesting it does not anticipate a further change in the near term.
The move follows a similar action by peer agency S&P, which upgraded Pakistan just a month ago. That earlier decision was attributed to strong institutional stability and the effective implementation of reforms under an ongoing International Monetary Fund (IMF) programme.
Together, the two upgrades signal growing international confidence in Pakistan's economic management, even as the country continues to navigate a challenging fiscal environment.