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Pakistan’s default risk has decreased significantly in the past 12 months, dropping from 59 percent to 47 percent, according to a report by Bloomberg.
The American business magazine noted that the fall in default probability is a result of improved credit outlook by global financial institutions, ongoing economic reforms, and growing market confidence.
Bloomberg emphasized that this drop reflects renewed investor trust in Pakistan’s financial system and macroeconomic stability.
Khurram Shahzad, Advisor to the Ministry of Finance, said that Bloomberg Intelligence ranks Pakistan at number one globally in terms of improvement in sovereign default risk.
He added that the 12-point drop in default risk shows the world is recognizing the country’s fiscal discipline and economic policies. “Investor confidence is key to this turnaround,” Shahzad said.
Pakistan’s better performance in sovereign risk indicators may now help in accessing cheaper credit, attracting foreign investments, and restoring global credibility in financial markets.
Experts believe this trend could support the country’s plans for long-term debt restructuring and macroeconomic stability, as the global market continues to watch its next financial steps.
