S&P Upgrades Pakistan’s Sovereign Credit Rating to ‘B’ with Stable Outlook

S&P Global Ratings has upgraded Pakistan’s long-term sovereign credit rating to ‘B’ from ‘B-‘, assigning a Stable Outlook in a move that reflects growing confidence in the country’s economic recovery. The upgrade marks Pakistan’s return to the ‘B’ rating category for the first time since 2016–17 and represents its highest sovereign rating level in nearly eight years.

According to S&P, the upgrade was driven by strengthened institutional capacity, the sustained implementation of IMF-backed economic reforms, faster fiscal consolidation, improved macroeconomic stability, and a significant increase in foreign exchange reserves. The agency said these developments have enhanced Pakistan’s ability to manage economic challenges and strengthen its overall fiscal position.

S&P’s Stable Outlook indicates confidence that the government will continue implementing structural reforms, maintain fiscal discipline, and preserve macroeconomic stability over the medium term. The improved rating is expected to bolster investor confidence, support access to international financial markets, and reinforce Pakistan’s efforts to sustain economic growth through continued policy reforms.