ISLAMABAD: Global ratings agency Moody’s has upgraded Pakistan’s sovereign credit rating, raising it from Caa1 to B3, citing improvements in governance, stronger foreign exchange reserves and lower domestic borrowing costs.
Moody’s said continued macroeconomic stabilization was also among the factors behind the upgrade.
The agency said improvements in these areas were expected to strengthen Pakistan’s external position and improve fiscal indicators.
The latest decision marks a two-notch improvement in Pakistan’s Moody’s rating over roughly 12 months.
Prime Minister Shehbaz Sharif welcomed the upgrade, saying it reflected growing international confidence in the government’s economic policies and reform agenda.
Sharif praised the efforts of Deputy Prime Minister and Field Marshal Asim Munir in supporting the economy. He said the government had taken effective measures to stabilize the economy and improve the country’s external sector.
The prime minister said continued government efforts and reforms had increased the confidence of international institutions in Pakistan, adding that improved ratings from global agencies were clear evidence of that confidence.