Prime Minister Shehbaz Sharif on Friday lauded S&P Global upgrade to the country’s sovereign credit rating to ‘B-’ from ‘CCC+’ and vowed to achieve sustainable economic growth.
A day earlier, ratings agency S&P Global had raised Pakistan’s sovereign credit rating to ‘B-’ from ‘CCC+’ and placed it on a ‘stable’ outlook, saying the country’s finances and reserves had been stabilised by International Monetary Fund (IMF) support.
“S&P’s upgrade of Pakistan’s credit rating from CCC+ to B-, with a stable outlook, is a welcome development,” PM Shehbaz said in a post on X.
“It reflects growing confidence in our economic reforms and the macroeconomic stability we have been able to achieve,” he added.
He continued that his administration remained committed to sustaining the momentum of reform, fostering transparency, and deepening investor confidence, “so that the early signs of recovery translate into lasting prosperity for our people and translate into sustainable economic growth”.
In its statement, S&P had said: “The stable outlook reflects our expectations that continued economic recovery and government efforts to enhance revenue will stabilise fiscal and debt metrics.
“We also expect that sustained official financing will support Pakistan in meeting its external obligations, and that the country will continue to roll over its commercial credit lines over the next 12 months.”
Pakistan’s longer-dated international bonds rallied after the upgrade, with the 2051 maturity gaining 1.6 cents to be bid at 84.85 cents on the dollar, according to Tradeweb data.
Last week, Finance Minister Muhammad Aurangzeb had urged the leading US rating agency — Moody’s — to improve Pakistan’s credit rating and help its return to international capital markets at favourable conditions.
Moody’s had upgraded Pakistan’s credit rating by one notch in August 2024 to Caa2 from Caa3 (downgraded in February 2023 due to suspension of the IMF programme) and changed its outlook to positive from stable for improving macroeconomic conditions, including liquidity and external position from very weak levels.
Global ratings agency Fitch had upgraded Pakistan’s foreign currency credit rating to ‘B-’ from ‘CCC+’ in April, citing increased confidence in the country’s progress on narrowing its budget deficits.
