According to a recent report by the global financial data agency Bloomberg, Pakistan’s default probability has dropped from 59% to 47% over the past year, marking an improvement of 1100 basis points.

 The report credits this positive development to Pakistan’s increasing economic stability and the implementation of effective financial reforms. The report has mentioned that factors such as growing investor confidence, a rise in foreign exchange reserves, successful negotiations with the International Monetary Fund (IMF), and enhanced domestic revenue generation efforts have played key role in this development.

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Pakistan’s prominent placement on Bloomberg’s list of emerging economies reflects strong support for the government’s recent economic policies. The report highlights that improved credit ratings and strengthened ties with international financial institutions have helped foster a more stable economic outlook, encouraging renewed global investor interest.

“Pakistan’s sharp decline in default risk sends a strong signal to the global financial markets,” Bloomberg noted, calling it a significant milestone in the country’s journey toward economic recovery.

Bloomberg also compared Pakistan’s progress with other emerging markets. While Argentina, Tunisia, and Nigeria saw slight reductions in default risk—by 7%, 4%, and 5%, respectively—countries like Turkiye, Ecuador, Egypt, and Gabon continue to be categorized as high-risk.

Pakistan’s economic rebound is further supported by steady growth in remittances and exports, both crucial indicators of the nation’s external financial health.