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Moody's Upgrades Pakistan's Sovereign Credit Rating to B3

Moody's has upgraded Pakistan's credit rating from Caa1 to B3, citing improved governance and reduced external risks.

24 August 2026Tagblick Newsdesk

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Archive photo: Moody's Upgrades Pakistan's Sovereign Credit Rating to B3 — Archive photoPhoto: Airman Gregory Nash · Wikimedia Commons · Public domain

Global ratings agency Moody's has upgraded Pakistan's sovereign credit rating from Caa1 to B3, as announced on Monday. The agency noted a stable outlook for the country following this change. According to Moody's, the upgrade reflects expectations of improvements in governance, which are anticipated to support the recent strengthening of Pakistan's external position.

The agency emphasized that these improvements could lead to better fiscal metrics for Pakistan, indicating a positive shift in the country's economic outlook. It also mentioned that the easing of external vulnerabilities contributes to this upgrade, including rising foreign reserves.

Moody's highlighted that while the upgrade points to some progress, challenges remain, particularly regarding the rule of law and the control of corruption within the country. These issues continue to be significant factors in assessing Pakistan's overall financial health.

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