Barclays upgrades Pakistan dollar bonds on economic stability

ISLAMABAD, June 24: Barclays has upgraded Pakistan’s dollar bonds to “overweight” a month after cutting them, citing better oil market prospects and stability in the economy, ARY News reported.

The British lender’s analysts said Pakistan’s external position has stayed unusually strong, prompting a more positive view, Bloomberg reported.

The report said the economy is showing consistent stability. Improved fiscal numbers, steady foreign exchange reserves, external buffers and moderate growth plus inflation have boosted investor confidence.

Barclays noted that multilateral and bilateral financial support for Pakistan is holding up. The country’s location between Central Asia and the Middle East could deliver more positive effects down the road.

Investors were told to buy Pakistan’s sovereign dollar bonds maturing in 2031, 2036 and 2051, along with Wapda’s 2031 bond.

Global rating agencies are also expected to review Pakistan’s credit rating in the second half of 2026 and could take a positive call, the report said.

Finance Minister’s adviser Khurram Shahzad called the move important for Pakistan. He said global investors and financial markets are now recognizing the improvement in key economic indicators.

In April 2026, Global credit rating agency Fitch Ratings affirmed Pakistan’s sovereign rating at ‘B’ with a stable outlook, highlighting signs of improving financial discipline and macroeconomic stability.

In its latest assessment, Fitch stated that maintaining the rating reflects better fiscal management and gradual economic stabilization, supported by ongoing reforms under the International Monetary Fund (IMF) programme.

Overall, Fitch emphasized that continued adherence to IMF-backed reforms will be critical for sustaining economic stability and improving Pakistan’s credit profile.

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