KARACHI – S&P Global Ratings upgraded Pakistan’s sovereign credit rating from CCC+ to B- with a Stable outlook in what is said to be first upgrade since December 2022 and signals improving confidence in the country’s economic recovery and debt-handling capacity.
The country’s rating trajectory has seen numerous ups and downs over the past three decades. From a B+ with Positive outlook in 1994, Pakistan has experienced several downgrades, particularly during times of economic distress such as in 1998, 2008, and most recently in 2022, when the country was downgraded to CCC+ amid economic and political instability.
Pakistan Ratings by S&P Global:
| Year | Rating | Outlook |
|---|---|---|
| 1994 | B+ | Positive |
| 1998 | CCC | Negative Watch; multiple downgrades |
| 2003–2007 | B+ | Stable; period of recovery |
| 2008 | CCC+ | Downgraded amid financial crisis |
| 2015 | B- | Positive |
| 2022 | CCC+ | Stable |
| 2025 | B- | Stable; recent upgrade |
Amid macroeconomic indicators, IMF program adherence, and efforts in fiscal consolidation. The Stable outlook suggests that no near-term change is expected unless there is significant deterioration or improvement in key indicators.
“This upgrade reflects renewed investor confidence and an improving external position. However, sustaining the momentum will require continued reforms and political stability,” said a senior economist at AHL Research.
