Moody’s Upgrades Pakistan’s Credit Rating to B3

Moody’s has upgraded Pakistan’s sovereign credit rating from Caa1 to B3, citing improvements in governance and the country’s overall economic and financial position.

According to Moody’s, Pakistan’s foreign exchange reserves have increased while the cost of domestic borrowing has declined. The rating agency said improvements in governance would help Pakistan preserve the gains achieved in its external position.

Moody’s further stated that Pakistan’s debt repayment capacity has improved significantly, reflecting greater resilience in the country’s ability to meet its financial obligations.