Moody Lifts Pakistan Credit Rating to Caa1 Citing Economic Improvements

Islamabad – Global credit rating agency Moody’s has upgraded Pakistan’s credit rating from Caa2 to Caa1 for both local and foreign currency debt. This upgrade reflects improving economic conditions in the country under the International Monetary Fund (IMF) Extended Fund Facility (EFF) program.

Moody’s is one of the top three credit rating agencies in the world. The agency also raised Pakistan’s rating for senior unsecured Medium-Term Note (MTN) programs from (P)Caa2 to (P)Caa1.

At the same time, Moody’s changed Pakistan’s outlook from “positive” to “stable”. This means the agency expects the country’s economic conditions to remain steady in the near future.

According to Moody’s, Pakistan’s foreign exchange reserves are slowly improving. However, the country will still need timely financial help from international partners to stay on track.

The agency also noted that Pakistan’s government finances are getting better, thanks to a growing tax base. Debt payments are becoming more manageable, but Pakistan’s debt situation remains one of the weakest among rated countries.

This upgrade is seen as a positive signal for investors and could help boost confidence in Pakistan’s economy.