Islamabad:( The COW News Digital )-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 CDS-implied probability.
Pakistan topped Global EM Rankings in Default Risk Reduction, as the country has recorded the largest drop in sovereign default risk globally over the last 12 months:
- Default probability down from 59% to 47% – an 11 percentage point improvement.
- This marks the sharpest decline among major emerging markets, ahead of Argentina (-7%), Tunisia (-4%), and Nigeria (-5%).
- In contrast, countries like Turkey, Ecuador, Egypt, and Gabon have seen their default risks rise.
This sharp decline in Pakistan’s risk signals renewed investor confidence—fueled by:
- Macroeconomic stabilization
- Structural reforms
- Successful IMF engagement & timely debt repayments
- Improved credit outlooks by S&P, Fitch, and others.
This is a resounding signal to global investors: Pakistan is not only back on the map—it is moving forward with stability, credibility, and reform at its core.
