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ISLAMABAD, August 24, 2026: International credit rating agency Moody’s has upgraded Pakistan’s sovereign credit rating by one notch to B3 from Caa1, maintaining a stable outlook.
The latest upgrade brings Pakistan’s credit rating to its highest level in around four years. The country last held a B3 rating in June 2022.
Moody’s has now upgraded Pakistan’s rating by two notches in approximately 12 months, reflecting improving economic conditions and greater financial stability.
The rating agency attributed the latest upgrade to improvements in governance, foreign exchange reserves, domestic borrowing costs and overall macroeconomic stability.
Moody’s expects these improvements to strengthen Pakistan’s external position and support a gradual improvement in the country’s fiscal indicators.
The upgrade also follows a similar move by S&P Global Ratings, which upgraded Pakistan’s sovereign rating by one notch to B with a stable outlook last month.
The latest rating action signals growing confidence among international rating agencies in Pakistan’s economic stabilization efforts and its ability to manage external and fiscal pressures.
