Moody’s Upgrades Pakistan’s Rating; Changes Outlook to Stable from Positive

Moody’s Investors Service has upgraded Pakistan’s long-term foreign debt rating from Caa2 to Caa1, reflecting the country’s improving external position. The outlook has been revised to stable, signaling confidence in Pakistan’s economic trajectory.

The upgrade reflects growing confidence in Pakistan’s ability to manage external debt repayments, shore up foreign exchange reserves, and broaden its tax base, despite continued political uncertainty and weak governance.