Pakistan has recorded one of the sharpest declines in default risks globally, emerging as the only country to show consistent improvement over the past 15 months, according to the Adviser to the Finance Minister, Khurram Schehzad.
“Pakistan is no longer viewed through the lens of default risk,” Schehzad said. “It is emerging as a stable, reform-driven, and resilient economy,” said Khurram Schehzad on Sunday In a post on X, citing a report of Bloomberg.
He said Pakistan ranked second among emerging economies showing the strongest reduction in sovereign default probabilities — only behind Turkiye.
Between June 2024 and September 2025, Pakistan’s default risk improved by 2,200 basis points, reflecting what Schehzad described as “a sign of sustained economic recovery and growing investor confidence.”
Exclusive: Pakistan Sees One of the Sharpest Drops Default Risk – Only Country with Consistent Improvement
As per the latest data posted by Bloomberg, Pakistan stands out globally as the 2nd most improved economy in terms of reduction in sovereign default risk, as measured by… pic.twitter.com/Tziu8JVUiG
— Khurram Schehzad (@kschehzad) October 5, 2025
“This is clear evidence of Pakistan’s durable economic improvement,” he said, adding “The country is the only economy to have demonstrated continuous quarterly improvement.”
Schehzad said, the trend demonstrates that investors’ trust in Pakistan is being restored, driven by macroeconomic stability, structural reforms, timely debt repayments, adherence to the IMF programme, and positive ratings from international agencies such as S&P, Fitch, and Moody’s.
He added that while countries such as South Africa and El Salvador saw limited improvement — and risks rose in Egypt, Nigeria, and Argentina — Pakistan’s steady progress reflects the success of ongoing fiscal and structural reforms.
