S&P upgrades Pakistan’s credit rating

ISLAMABAD: Pakistan’s economy has seen a positive development, as S&P Global have upgraded Pakistan’s credit rating, restoring trust in the country’s economic path, ARY News reported.

This key development will boost investor confidence in Pakistan’s economic outlook.

Pakistan’s sovereign credit rating has been elevated by S&P Global Ratings from CCC+ to B- with a steady outlook. The rating elevation is the cause of better fiscal conditions, growing foreign reserves, and funding from the International Monetary Fund (IMF).

A similar enhancement by Fitch Ratings earlier this year also raised Pakistan’s credit rating to B- from CCC+, prompting the first improvement of this kind in the last six years.

The promotions indicate Pakistan’s progress in macroeconomic policy changes, which include inflation control, revenue generation, and financial discipline.

According to S&P Global, Pakistan’s foreign reserves have surged to $20.5 billion, from a bottom level of $6.7 billion in December 2022. The IMF’s $7 billion extended financial assistance and a $1.3 billion flexibility have been pivotal reasons in stabilising the economy.

IMF authorities lauded Pakistan’s “strong program implementation,” indicating a primary excess of 2.0% of GDP and inflation decreasing to historic lows.

Business outlook is growing. PwC noted that optimism among CEOs surged from 49% to 85%, while the OICCI Business Confidence Index increased from 5% to 11%10.

According to Gallup Pakistan, these findings are indications of a positive economic direction.

These developments demonstrate that Pakistan’s credit rating improvements are not isolated occurrences but part of a broader economic recovery.

With continued improvements and global assistance, Pakistan’s credit rating may continue to strengthen, paving the way for increased investment and sustainable growth.

Read More: PM Shehbaz pushes for digital economy to boost transparency

Earlier, on Pakistan’s economy, Prime Minister (PM) Shehbaz Sharif said that the government’s foremost goal is to enhance economic transparency through a digitisation system.

Presiding over the weekly meeting focused on a cashless and digital economy, PM Shehbaz said that digitising payment processes between the government and citizens would foster transparency and convenience for users.