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Moody's ratings upgrades Pakistan's credit ratings to Caa1

Cites improving external buffers, fiscal consolidation, and progress on reforms under IMF program

GNN Web Desk
Published 3 hours ago on Aug 13th 2025, 10:01 pm
By Web Desk
Moody's ratings upgrades Pakistan's credit ratings to Caa1

(Web Desk): Moody's Ratings has upgraded Pakistan's local and foreign currency credit ratings to Caa1 from Caa2, citing improving external buffers, fiscal consolidation, and progress on reforms under the IMF program.

Moody's upgrade of Pakistan's sovereign credit rating to Caa1 with a stable outlook reflects growing international confidence in the government's economic reform agenda.

This milestone, supported by stronger foreign exchange reserves, fiscal consolidation, and a broadened revenue base, is the result of sustained progress through the home-grown Reforms agenda under the IMF Extended Fund Facility.

While challenges remain, this recognition reaffirms that Pakistan is on a clear path toward greater macroeconomic stability and resilience.

With Moody's upgrade, all three top global Rating Agencies, including S&P and Fitch, have now upgraded Pakistan's Ratings with a Stable Outlook.

These upgrades happened within the shortest possible time, while some of the ratings are at around three years high as well.

At this moment of Positive Progress, Advisor to the Finance Minister Khurram Schehzad has extended his heartfelt wishes to the entire nation for a very Happy Independence Day.

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