Standard & Poor’s (S&P) Global has upgraded Pakistan’s long-term sovereign credit rating to ‘B’ from ‘B-’, citing economic reforms, stronger institutions, and improved foreign reserves. The upgrade is expected to support investor confidence and strengthen Pakistan’s access to international financial markets.
According to S&P Global, the rating improvement reflects sustained implementation of reforms under the International Monetary Fund (IMF) programme. The agency also raised Pakistan’s transfer and convertibility assessment to ‘B’ from ‘B-’.
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Moreover, S&P said Pakistan had strengthened institutional capacity over the past two years through critical reforms. The agency noted that improved fiscal performance and rising foreign exchange reserves helped reduce pressure on external financial indicators.
The rating agency highlighted Pakistan’s progress under the IMF Extended Fund Facility approved in 2024. It said timely programme reviews and support from bilateral partners contributed to rebuilding foreign reserves and improving economic stability.
S&P stated that Pakistan’s foreign reserves, including central bank gold holdings, increased to $25.3 billion by June 2026 from $6.7 billion in December 2022. The agency added that fiscal consolidation efforts helped reduce government debt pressures.
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Meanwhile, S&P warned that ratings could face pressure if fiscal discipline weakens, external indicators deteriorate, or financing challenges increase. However, further improvements could lead to future upgrades if economic conditions continue strengthening.
Prime Minister Shehbaz Sharif welcomed the rating upgrade and called it recognition of Pakistan’s economic reforms. He said the development would improve investor confidence and support future growth opportunities.