Bloomberg, the international financial information and media firm, has described Pakistan as the most improved economy in terms of reducing default risk.
The report attributes this progress to renewed investor confidence, macroeconomic stabilisation, structural reforms, successful engagement with the International Monetary Fund (IMF), timely debt repayments, and positive credit outlooks from global rating agencies including Fitch and S&P.
According to Bloomberg’s research division, Pakistan’s credit default swap (CDS)-implied probability of default declined from 59 per cent to 47 per cent over the last 12 months — an 11 percentage point drop and the largest reduction among emerging markets globally.
This improvement outpaces other countries such as Argentina, Tunisia, and Nigeria, while some nations including Egypt, Gabon and Turkey have seen their default risks increase.
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As per the latest data posted by Bloomberg Intelligence, Pakistan stands out globally as the most improved economy in terms of reduction in sovereign default risk, as measured by… pic.twitter.com/FX4fR8QVFD
— Khurram Schehzad (@kschehzad) June 28, 2025
Khurram Shehzad, adviser to the finance minister, took to social media platform X to highlight Pakistan’s achievement, stating that the country “stands out globally as the most improved economy in terms of reduction in sovereign default risk.”
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He further added that this “marks the sharpest decline among major emerging markets,” and credited factors such as macroeconomic stabilisation, structural reforms, successful IMF engagement, and timely debt repayments for the positive trend.
“This is a resounding signal to global investors that Pakistan is not only back on the map — it is moving forward with stability, credibility, and reform at its core,” he said.
Prime Minister Shehbaz Sharif welcomed the Bloomberg report, expressing satisfaction over the acknowledgment of Pakistan’s economic stability.
“The report acknowledges important institutional reforms in various sectors, successful agreement with the IMF, and timely loan repayments, which are definitely evidence of improvement in the government’s economic situation,” he remarked.
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He added that Pakistan was among the few countries to show the most economic improvement in the past year, according to Bloomberg’s data, and said the country was advancing swiftly towards a stronger economic future.
The prime minister attributed these gains to the sustained efforts and dedication of the government’s economic team.