Pakistan Becomes World’s 2nd Most Improved Economy in Sovereign Default Risk

Pakistan has recorded a major economic breakthrough, becoming the world’s second most improved economy in terms of reducing sovereign default risk, according to the latest global data released by Bloomberg.

Advisor to the Finance Minister, Khurram Schehzad, shared that Pakistan now ranks just behind Turkiye in the Global Emerging Market (EM) Rankings, marking one of the sharpest improvements worldwide over the past 15 months.

Consistent Improvement Amid Challenges

Unlike other economies in the sample, Pakistan stands out as the only emerging market to register consistent quarterly improvement over the last year. Experts credit this trend to renewed investor confidence, macroeconomic stabilization, and a series of structural reforms initiated by the government.

The country’s performance is also bolstered by timely debt servicing, strict adherence to the IMF program, and encouraging updates from international credit rating agencies such as S&P, Fitch, and Moody’s, which have upgraded Pakistan’s outlook in recent months.

Investor Confidence on the Rise

Officials argue that these developments reflect a broader sentiment of growing economic stability, making Pakistan a more attractive destination for foreign investors. Market analysts note that global investors are now revisiting Pakistan as a viable emerging market after years of volatility.

Looking Ahead

With this recognition, Pakistan’s economic managers are optimistic about maintaining the current trajectory. However, they caution that sustaining momentum will require continued fiscal discipline, effective policy execution, and resilience against external shocks.

As the global economy faces uncertainty, Pakistan’s progress signals a promising shift, positioning the country as a key emerging player in international markets.