Pakistan ranks second worldwide in default risk improvement: Bloomberg

Pakistan has achieved the second-largest improvement globally in reducing sovereign default risk, behind only Türkiye, according to data released by Bloomberg.

Adviser to the Federal Finance Minister Khurram Schehzad said Sunday that Pakistan has shown a consistent decline in default risk over the past year, making it the only country to record quarterly improvement throughout the period.

In a post on social media platform X, Schehzad said the country’s default probability has dropped by 2,200 basis points over the last 15 months — the sharpest decline among major emerging markets.

He noted that Pakistan ranked second in Bloomberg’s Global Emerging Market Default Risk Reduction Rankings, with South Africa and El Salvador also showing improvement, while Argentina, Egypt, and Nigeria saw their risks increase.

The adviser attributed Pakistan’s progress to macroeconomic stabilization, structural reforms, timely debt servicing, adherence to the IMF programme, and positive credit rating actions from international agencies such as S&P, Fitch, and Moody’s.

Schehzad added that the trend reflects growing investor confidence and that Pakistan is rebuilding its market credibility, emerging as one of the most improved sovereign credit stories among emerging markets.