The Moody’s upgrade
EDITORIAL: Moody’s has upgraded Pakistan’s sovereign credit rating to B3 from Caa1, a four-year high on the back of improved governance, stronger external buffers and sustained macroeconomic stabilisation. This prompted Prime Minister Shehbaz Sharif to congratulate the nation and to describe the upgrade as indicative of growing international confidence in the country’s economic policies. He…
Moody’s has upgraded Pakistan's sovereign credit rating from Caa1 to B3, marking a four-year high. Prime Minister Shehbaz Sharif expressed pride in the nation, crediting the government officials for their efforts. The upgrade places Pakistan's rating at par with Fitch's B negative rating and one tier below S&P's B rating. This does not signify an improvement in Pakistan's attractiveness to foreign investors, as reflected in the decline of foreign direct investment from 2024-25 to 2025-26.
Pakistan has been able to access loans from multilateral lenders and International Monetary Fund (IMF) tranche releases, with ongoing support from regional countries. Despite the upgrade, complacency is advised, and further efforts are needed to reach an investment-grade rating.
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