Moody’s Upgrades Pakistan’s Credit Rating Citing Improved Financial Stability

Islamabad (News Desk)- Moody’s Ratings has upgraded Pakistan’s sovereign credit rating from Caa2 to Caa1, reflecting the country’s improving financial position and commitment to economic reforms. The outlook has been marked as stable.

This upgrade follows a recent disbursement of funds from the International Monetary Fund (IMF), which has bolstered Pakistan’s foreign exchange reserves and strengthened investor confidence.

Moody’s acknowledged the efforts of Prime Minister Shehbaz Sharif’s government, which has pledged to continue implementing tough fiscal and structural reforms in line with the IMF program. The government’s focus on fiscal consolidation and economic stabilization was a key factor in the rating revision.

This marks the third major upgrade for Pakistan in the past four months, after similar moves by S&P Global Ratings and Fitch Ratings, suggesting growing international confidence in the country’s economic trajectory.

Read more: PM Shehbaz Warns India of Unforgettable Response Over Water Threat

Financial analysts view the upgrade as a positive signal for investors and a potential catalyst for increased foreign investment in Pakistan’s economy.