On June 28, 2025, Bloomberg Intelligence’s Global Emerging Market Rankings highlighted Pakistan’s remarkable achievement as the world’s most improved economy in reducing sovereign default risk.
Pakistan’s credit default swap (CDS)-implied probability of default dropped from 59% to 47% over the past year, an 11-point decline, outpacing nations like Argentina and Nigeria. Consequently, this milestone signals Pakistan’s economic resurgence, driven by reforms and global confidence.
Bloomberg attributes Pakistan’s progress to macroeconomic stabilisation, structural reforms, and successful IMF engagement. Timely debt repayments and positive outlooks from Fitch and S&P further bolstered investor trust, per Bloomberg.
Breaking: Pakistan Leads the World in Sovereign Risk Improvement – Tops Global EM Rankings
As per the latest data posted by Bloomberg Intelligence, Pakistan stands out globally as the most improved economy in terms of reduction in sovereign default risk, as measured by… pic.twitter.com/FX4fR8QVFD
— Khurram Schehzad (@kschehzad) June 28, 2025Khurram Shehzad, adviser to the Finance Minister, celebrated the achievement on X, highlighting Pakistan’s significant decline among major emerging markets. These efforts have also positioned Pakistan as a stable investment destination.
Prime Minister Shehbaz Sharif praised the dedication of the economic team, emphasising the importance of institutional reforms and agreements with the IMF. The report highlights Pakistan’s significant progress among emerging markets, noting that few other countries have achieved similar gains. In contrast, nations like Egypt and Turkey are facing increasing default risks, which further underscores Pakistan’s strong performance. Sharif stated that the country is moving toward a more robust economic future.
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Pakistan’s 11-point drop in the Composite Default Swaps (CDS) indicates a renewed confidence among investors, especially in contrast to the challenges faced by other countries. Shehzad described Pakistan as being “back on the map,” emphasising stability and reform as its foundational elements. However, public sentiment remains mixed. A Bloomberg report supports the government’s economic strategy, positioning Pakistan as a leader in the global financial recovery.
