Pakistan has been ranked among the world’s top emerging economies following a significant drop in its default risk in a major boost to investor sentiment and international credibility.
According to a new report by the globally renowned financial data agency Bloomberg, Pakistan’s probability of default has declined from 59% to 47% over the past 12 months — a notable improvement of 1100 basis points.
The report highlights Pakistan’s growing economic stability and successful financial reforms as key factors behind this improvement. Bloomberg attributes the positive shift to enhanced investor confidence, improved foreign exchange reserves, successful negotiations with the International Monetary Fund (IMF), and increased efforts to boost revenue through domestic reforms.
Pakistan’s inclusion at the top of Bloomberg’s list of emerging economies reflects a strong endorsement of the government’s recent economic measures. The report states that credit rating upgrades and strengthened relations with international financial institutions have contributed to a more stable outlook, encouraging global investors to re-engage with Pakistan.
“Pakistan’s significant reduction in default risk sends a powerful message to the global financial community,” the report noted. “It is a major milestone on the country’s path to economic recovery.”
Bloomberg’s data also compared Pakistan’s performance with other emerging economies. Countries like Argentina, Tunisia, and Nigeria saw modest improvements in their default risk (falling by -7%, -4%, and -5%, respectively), while others, such as Turkiye, Ecuador, Egypt, and Gabon, remain in the high-risk category.
