In a significant boost to national economic recovery, Pakistan has recorded the highest improvement globally in reducing sovereign default risk over the past 12 months, according to a new report by Bloomberg Intelligence.
The report highlights that Pakistan’s credit default swap (CDS)-implied probability of default has dropped from 59% to 47%, marking an impressive 11% improvement — or 1,100 basis points — the highest among all countries assessed.
This performance positions Pakistan ahead of other major emerging economies, including Argentina (-7%), Tunisia (-4%) and Nigeria (-5%).
Economic adviser to the finance ministry, Khurram Shehzad, underscored the achievement in a recent post on social media, noting that no other emerging market has seen such a sharp decline in default risk.
In contrast, nations like Turkey, Ecuador, Egypt, and Gabon witnessed a rise in default probabilities, indicating a positive shift in investor sentiment toward Pakistan.
Analysts attribute this turnaround to successful structural reforms, timely debt repayments, a revived IMF programme, and improved credit outlooks from global rating agencies.
The report serves as a clear signal to global investors that Pakistan is making strides toward macroeconomic stability and credibility.
After months of being on the brink of default, Pakistan is now seen as a re-emerging economy focused on reforms, stability, and global reintegration.
“This is not just a recovery from the brink; it’s a strong comeback backed by policy discipline and improved international standing,” Bloomberg analysts noted.
