Pakistan has formally approached S&P Global Ratings for a further upgrade in its sovereign credit rating as the government prepares to raise around $2 billion from international debt markets during the current fiscal year.
Pakistan is seeking another ratings upgrade after S&P raised the country’s sovereign rating from ‘CCC+’ to ‘B-‘ in July 2025 while assigning a stable outlook, citing improved external finances backed by the IMF programme. Despite the upgrade, Pakistan remains below investment grade, making international borrowing relatively expensive.
A higher sovereign rating could help Pakistan access international capital markets at lower borrowing costs as it plans to issue fresh dollar-denominated bonds worth around $2 billion during FY2026-27.
Finance Minister Muhammad Aurangzeb on Thursday discussed Pakistan’s economic outlook and reform agenda with an S&P Global Ratings delegation led by Director Sovereign Ratings YeeFarn Phua and Associate Director Giulia Filocca during a meeting in Islamabad on Thursday.
According to the Finance Ministry, the minister highlighted improvements in Pakistan’s macroeconomic indicators, including stronger economic growth, lower inflation, higher foreign exchange reserves, improved debt sustainability and a more resilient external sector. He said these gains were supported by fiscal discipline, structural reforms and the FY2026-27 federal budget.
The S&P delegation acknowledged Pakistan’s progress in improving macroeconomic stability and discussed the country’s medium-term economic outlook, fiscal reforms and measures aimed at further strengthening its sovereign credit profile.
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