ISLAMABAD – Pakistan has achieved a major economic milestone by becoming one of the world’s leading countries in reducing sovereign default risk, according to Bloomberg data shared by Advisor to the Finance Minister, Khurram Schehzad, on Sunday.
Sharing the latest figures, Schehzad stated that Pakistan ranks as the second most improved economy worldwide in terms of lowering default risk, based on Credit Default Swap (CDS)–implied default probability. Only Turkey has performed better in the global emerging market (EM) rankings.
Over the last 15 months — from June 2024 to September 2025 — Pakistan recorded one of the sharpest drops in sovereign default probability, making it the only emerging market to show consistent quarterly improvement during this period.
According to Schehzad, Pakistan’s default probability has declined by nearly 2,200 basis points, marking a stronger improvement than other emerging economies such as South Africa and El Salvador. Meanwhile, nations like Argentina, Egypt, and Nigeria have seen their default risks increase.
He attributed this progress to a combination of factors, including:
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Continued macroeconomic stabilization,
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Structural reforms initiated by the government,
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Timely debt repayments,
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Commitment to the IMF program, and
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Positive credit rating actions from S&P, Fitch, and Moody’s.
These developments, he noted, reflect growing investor confidence and renewed global trust in Pakistan’s financial stability. Schehzad emphasized that the country is “steadily rebuilding its market credibility” and now stands among the most improved sovereign credit stories in the emerging markets universe.
