Moody’s has upgraded Pakistan’s credit rating from Caa3 to Caa2 reflecting an improved outlook from stable to positive

Moody’s has upgraded Pakistan’s credit rating from Caa3 to Caa2, reflecting an improved outlook from stable to positive.

The upgrade applies to both local and foreign currency debt ratings, driven by increased certainty regarding Pakistan’s external financing following a staff-level agreement with the IMF for a $7 billion Extended Fund Facility.

Moody’s anticipates the IMF will approve the bailout package soon and noted that Pakistan’s foreign exchange reserves have roughly doubled since June 2023.