S&P Global Ratings upgrades Pakistan's sovereign credit rating to 'B'
Why This Matters
Key context: <p>S&P Global Ratings on Wednesday upgraded Pakistan’s long-term sovereign credit rating to ‘B’ from ‘B-’, citing an improving external position and gradual macroeconomic stabilisation, while assigning a stable outlook.</p> <p>The agency also affirmed the country’s short-term sovereign credit rating at ‘B’ and raised its transfer and convertibility assessment to ‘B’ from ‘B-’.</p> <p>In a <a rel="noopener noreferrer" target="_blank" class="link--external" href="https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3598441">statement</a>, the credit rating agency said the change in rating was based on its belief that the country had strengthened its institutional capacity, allowing it to implement reforms of the International Monetary Fund (IMF).</p> <p>“Our upgrade on Pakistan is predicated on improved institutional stability that has helped to implement critical IMF programme reforms,” it said. “These reforms have quickened fiscal consolidation and rebuilt external buffers.”</p> <p>It noted that the institutional settings of Pakistan had strengthened over the last two years, in particular highlighting the passage of the IMF’s Extended Fund Facility (EFF) US$7 billion programme in September 2024 as “critical in restoring macroeconomic stability to the country and replenishing foreign reserves”.</p> <p>Pakistan has met most of the EFF programme targets “thus far”, it said, allowing for timely IMF disbursements.</p> <p>“A relatively stable political environment has been instrumental in this regard,” it added.</p> <hr /> <p><em>More to follow</em></p> This development from dawn.com highlights ongoing changes in the sector.
S&P Global Ratings on Wednesday upgraded Pakistan’s long-term sovereign credit rating to ‘B’ from ‘B-’, citing an improving external position and gradual macroeconomic stabilisation, while assigning a stable outlook. The agency also affirmed the country’s short-term sovereign credit rating at ‘B’ and raised its transfer and convertibility assessment to ‘B’ from ‘B-’. In a statement, the credit rating agency said the change in rating was based on its belief that the country had strengthened its institutional capacity, allowing it to implement reforms of the International Monetary Fund (IMF). “Our upgrade on Pakistan is predicated on improved institutional stability that has helped to implement critical IMF programme reforms,” it said. “These reforms have quickened fiscal consolidation and rebuilt external buffers.” It noted that the institutional settings of Pakistan had strengthened over the last two years, in particular highlighting the passage of the IMF’s Extended Fund Facility (EFF) US$7 billion programme in September 2024 as “critical in restoring macroeconomic stability to the country and replenishing foreign reserves”. Pakistan has met most of the EFF programme targets “thus far”, it said, allowing for timely IMF disbursements. “A relatively stable political environment has been instrumental in this regard,” it added. More to follow
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