ISLAMABAD – Pakistan’s risk of default has significantly declined, making it the only country in the world showing consistent economic improvement, according to a latest Bloomberg report.
The report highlights that Pakistan has recorded the fastest reduction in default risk globally, reflecting sustained improvement in its macroeconomic indicators. The country now ranks second after Türkiye in terms of improvement in financial stability.
Advisor to the Federal Minister for Finance, Khurram Shehzad, stated that Pakistan is the only country that has shown quarter-on-quarter economic improvement over the past year. He noted that between June 2024 and September 2025, Pakistan’s default risk dropped by approximately 2,200 basis points, a remarkable achievement demonstrating growing financial resilience.
Shehzad added that Pakistan’s economic turnaround is evidence that the economy is now moving in the right direction. The government ensured timely debt repayments, adhered to the IMF program, and implemented key structural reforms, all of which have restored confidence among global financial institutions and investors.
According to Bloomberg, Pakistan has outperformed countries such as South Africa, El Salvador, Egypt, Nigeria, and Argentina, where economic conditions either stagnated or deteriorated. Pakistan stood out as the only nation that posted steady improvement each quarter.
Economists attribute this success to policy consistency, fiscal discipline, timely debt servicing, IMF compliance, and positive outlooks from major global rating agencies such as Moody’s, Fitch, and S&P.
Khurram Shehzad emphasized that these efforts have revived investor confidence and opened the door for increased foreign investment inflows.
“Pakistan has effectively emerged from the shadow of default risk,” Shehzad said. “We are moving toward becoming a stable and confident economy.”
Experts believe that if the government maintains its current pace of reforms and policy discipline, Pakistan will not only stabilize its economy but also re-emerge as a strong player in global financial markets in the coming years.
They also noted that this economic progress bodes well for the general public, as it may help ease inflationary pressures, create employment opportunities, and strengthen the Pakistani rupee.
