Moody’s raises Pakistan’s credit rating

Moody’s raised Pakistan’s credit rating by one notch to ’Caa1’ from ’Caa2’ on Wednesday, citing improvements in the country’s external position.

The agency said the improvement reflects Pakistan’s strengthening financial position in line with the ongoing International Monetary Fund (IMF) program. Prime Minister Shehbaz Sharif welcomed the development, linking it to the government’s prudent economic policies and improved economic indicators. He also expressed satisfaction over Pakistan’s exports reaching 2.7 billion dollars in the first month of the new fiscal year.

According to the Prime Minister, exports rose by 17 percent compared to July last year, while a nine percent increase within a single month is a positive sign for the national economy. He said export-led growth remains the government’s top priority and efforts are underway to boost trade, attract investment, and create a business-friendly environment. The Prime Minister praised the work of the government’s economic team, noting that measures such as the faceless customs assessment system are improving port operations. He also pointed to the increase in the tax-to-GDP ratio as a satisfactory achievement.

Moody’s noted that the IMF program is helping Pakistan stabilize its economy, manage external financing needs, and strengthen fiscal discipline. The stable outlook reflects expectations that the government will maintain reform momentum and policy consistency in the coming months. This rating upgrade is seen as a boost for investor confidence and could support Pakistan’s efforts to secure financing and attract foreign investment. The government says it will continue focusing on sustainable growth, economic stability, and expanding the country’s export base.