Islamabad (TDI): Pakistan has seen one of the steepest declines in sovereign default risk worldwide, ranking second only to Turkiye among emerging economies showing the strongest recovery, according to Finance Ministry Adviser Khurram Schehzad.
In a post shared on X on Sunday, Schehzad cited Bloomberg data showing that Pakistan was the only country to record uninterrupted improvement in default risk indicators over the past 15 months.
“Pakistan is no longer viewed through the lens of default risk,” Schehzad wrote. “It is emerging as a stable, reform-driven, and resilient economy.”
He said that between June 2024 and September 2025, Pakistan’s default probability improved by 2,200 basis points, reflecting what he described as “a sign of sustained economic recovery and growing investor confidence.”
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Schehzad added that the trend underlines the country’s improving macroeconomic fundamentals, credit discipline, and ongoing fiscal reforms. “This is clear evidence of Pakistan’s durable economic improvement. We are the only economy showing consistent quarterly progress,” he said.
According to Bloomberg’s analysis, Pakistan now stands out globally as one of the few emerging markets demonstrating steady improvement in risk perception. While nations such as South Africa and El Salvador recorded limited gains, and countries like Egypt, Nigeria, and Argentina saw their risk levels rise, Pakistan maintained a positive trajectory.
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The adviser attributed the improvement to structural reforms, timely debt repayments, compliance with the IMF program, and favorable ratings from international credit agencies such as S&P, Fitch, and Moody’s.
