Prime Minister Shehbaz Sharif has welcomed Bloomberg’s latest analysis on Pakistan’s economic recovery, describing it as a testament to the country’s improving fiscal health and growing global investor confidence. The report places Pakistan as the second most improved economy worldwide in reducing sovereign default risk, marking a significant milestone in the nation’s ongoing journey toward economic stability.
According to Bloomberg’s data, Pakistan recorded one of the steepest drops in credit default swap (CDS)-implied default probability among emerging markets over the past fifteen months, spanning from June 2024 to September 2025. The country now ranks just behind Turkey in Bloomberg’s Global Emerging Market (EM) Default Risk Reduction Index, reflecting a remarkable turnaround from its previously precarious financial position.
The Prime Minister’s Office (PMO) issued a statement emphasizing that this consistent improvement is a direct outcome of the government’s strategic fiscal management, sustained policy reforms, and strengthened engagement with global financial institutions. “By the end of the previous administration, Pakistan was dangerously close to default,” the Prime Minister said, noting that the Bloomberg assessment represents “a very important milestone and a manifestation of our economic recovery efforts.”
He credited the progress to the collective efforts of the government, the Pakistani business community, and international partners who have supported the country’s reform agenda. “With the tireless work of our economic team and cooperation from domestic and global stakeholders, the promise of Pakistan’s development is once again taking shape,” he added.
The Bloomberg data highlights that Pakistan’s sovereign default probability has dropped by nearly 2,200 basis points — the largest improvement seen in South Asia and among the highest globally during the same period. This downward trend reflects not only stabilization in macroeconomic indicators but also renewed trust among global lenders and investors. Pakistan remains the only emerging market in Bloomberg’s sample to show consistent quarterly improvement throughout the past year.
Economic experts attribute the country’s improved risk perception to a mix of structural reforms, disciplined fiscal policies, and adherence to the International Monetary Fund (IMF) program. Earlier, Advisor to the Finance Minister Khurram Schehzad noted that the steep fall in default risk “signals a visible rebound in investor sentiment,” driven by timely debt repayments, continued macroeconomic stabilization, and favorable actions by major credit rating agencies such as Moody’s, Fitch, and S&P.
Pakistan’s performance has also been reinforced by the government’s focus on fiscal prudence, enhanced revenue collection, and reforms in the energy and export sectors. The implementation of digital tax systems, stronger financial governance, and strategic partnerships with multilateral organizations have played a pivotal role in ensuring stability and transparency.
Bloomberg’s recognition has been widely interpreted by analysts as a turning point in Pakistan’s financial narrative — shifting the country’s image from a high-risk economy to a re-emerging investment destination. The positive outlook is expected to improve access to foreign capital, support local market sentiment, and encourage foreign direct investment (FDI) inflows.
As Pakistan continues to navigate global economic challenges, the government remains focused on sustaining this momentum through prudent monetary management and inclusive growth policies. The Prime Minister reaffirmed his administration’s commitment to staying the course of reform, saying, “This achievement reflects the resilience of our nation, the confidence of our investors, and the strength of our policies. The journey ahead demands the same unity, discipline, and determination.”
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