Moody’s has upgraded Pakistan’s credit rating from Caa2 to Caa1, shifting the outlook from positive to stable, citing notable improvements in the country’s external position. The upgrade applies to both local and foreign currency issuer ratings as well as senior unsecured debt ratings.
According to the report released on Wednesday, the decision reflects Pakistan’s progress in reform implementation under the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) program. Key factors include improved external buffers, ongoing fiscal consolidation, and reforms aimed at strengthening the economy’s resilience.
Moody’s noted that Pakistan has demonstrated a growing ability to manage external debt repayments, build foreign exchange reserves, and expand its tax base—despite persistent political uncertainty and governance challenges.
The agency also extended the Caa1 upgrade to the backed foreign currency senior unsecured ratings for The Pakistan Global Sukuk Programme Co. Ltd.
A comparative snapshot from the report highlighted that Pakistan’s long-term foreign currency debt rating remains at B- with a stable outlook according to Fitch and S&P, underscoring alignment in ratings among global credit agencies.
