S&P Global Ratings has upgraded Pakistan’s credit rating from +CCC to –B showing improved economic and financial indicators.
S&P is one of the three major global credit rating agencies. It reviews the financial health of countries, banks, and companies worldwide.
The report says Pakistan’s foreign reserves have risen to $20.5 billion. This is enough to meet the government’s external payment needs.
Pakistan’s current account posted a surplus for the first time in 14 years. Remittances reached a record $39 billion in the year.
The government increased tax revenue by 3 percent of GDP while the fiscal deficit has fallen from 7.9% to 5.6%.
Inflation dropped from 29% in 2023 to 4.5% in 2025. This helped reduce pressure on the economy.
Revenue collection has improved significantly under the current IMF programme.
According to global financial giant, Pakistan GDP growth is expected to be 2.7% in 2025 and 3.6% in 2026.
The Pakistani rupee has gained value and the exchange rate has remained stable.
Pakistan received $16.8 billion in external support. These Funds came from China, Saudi Arabia, the UAE, and Kuwait.
Meanwhile, the World Bank has approved a $20 billion 10-year cooperation plan. The government has started restructuring its debt.
Short-term loans are being replaced with long-term bonds. S&P Global Ratings said the changes improve Pakistan’s debt outlook.
This follows a recent upgrade by Fitch Ratings. Both agencies cite reforms under the IMF program.
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