Pakistan has achieved the world’s steepest fall in sovereign standard risk in the past year, which led Bloomberg Intelligence’s Global Emerging Market (European Championships) locations for improving credit risk, according to data released by the Finance Minister’s adviser on Saturday.
Bloomberg, the International Economic Information and Media Company, has described Pakistan as the most improved economy in reducing default risk.
The report attributes this progress to renewed investor confidence, macroeconomic stabilization, structural reforms, successful commitment with the International Monetary Fund (IMF), timely repayment of debt and positive credit prospects from global rating agencies, including FITCH and S&P.
According to Bloomberg’s research department, Pakistan’s Credit Standard SWAP (CDS) decreased probability of default from 59 percent to 47 percent over the last 12 months -a decrease in 11 percentage points and the largest reduction between new markets globally.
This improvement surpasses other countries such as Argentina, Tunisia and Nigeria, while some nations, including Egypt, Gabon and Turkey, have seen their standard risks rise.
BREAKING: Pakistan leads the world in sovereign risk improvement – Tops Global Em Rankings
According to the latest data sent by Bloomberg Intelligence, Pakistan stands out globally as the most improved economy in terms of reduction in superb standard risk, measured by … pic.twitter.com/fx4fr8qvfd
– Khurram Schehzad (@kschehzad) June 28, 2025
Khurram Shehzad, adviser to the finance minister, went to social media platform X to highlight Pakistan’s performance and said the country “stands out globally as the most improved economy in terms of reduction in superb default risk.”
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He further added that this “marks the sharpest decline among the most important new markets” and credited factors such as macroeconomic stabilization, structural reforms, successful IMF engagement and timely repayments for the positive trend.
“This is a resounding signal to global investors that Pakistan is not only left on the map – it is moving forward with stability, credibility and reform at the core,” he said.
Prime Minister Shehbaz Sharif welcomed the Bloomberg report and expressed satisfaction over the recognition of Pakistan’s economic stability.
“The report recognizes important institutional reforms in various sectors, a successful agreement with the IMF and timely repayments, which are certainly evidence of improvement in the government’s financial situation,” he noted.
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He added that Pakistan was among the few countries that showed the most economic improvement in the past year, according to Bloomberg’s data, and said the country was moving quickly towards a stronger economic future.
The Prime Minister attributed these gains to the sustained efforts and dedication of the government’s financial team.
