Islamabad: Barclays upgraded Pakistan sovereign dollar bonds, reversing its May downgrade after stronger reserves, improved fiscal indicators and rising investor confidence.
The upgraded assessment was reported in a Bloomberg article, and the Adviser to the Finance Minister, Khurram Shehzad, later referenced it in a post on X.
Barclays projected improved performance for Pakistan’s sovereign bonds. The institution cited improving economic indicators, stronger foreign exchange reserves and growing confidence in Pakistan’s fiscal and financial stability.
Bloomberg cited analysts, including Avanti Save, who said Pakistan’s external position had shown resilience, supporting a more optimistic outlook for the country.
Pakistan’s improved fiscal position, steadier external buffers, relatively steady foreign reserves and a moderate growth and inflation picture. Barclays said access to international financial assistance had supported macroeconomic stability.
The Barclays move followed Fitch Ratings’ decision to affirm Pakistan’s sovereign rating at “B” with a stable outlook. Fitch cited better fiscal management and gradual economic stabilisation under the International Monetary Fund programme.
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Fitch said Pakistan was likely to receive a $1.2 billion IMF tranche. The agency said the inflow could strengthen foreign exchange reserves, ease external financing pressure and reduce the burden of external debt repayments.
Fitch also warned that Pakistan remains exposed to energy-related risks in the Middle East, which could affect economic stability
