PM Shehbaz welcomes Bloomberg’s report as Pakistan’s default risk falls sharply

Prime Minister Shehbaz Sharif on Monday welcomed Bloomberg’s recent positive assessment of Pakistan’s economy, terming it a significant milestone reflecting restored investor confidence.

As per the latest data posted by Bloomberg, Pakistan stands out globally as the second most improved economy in terms of reduction in sovereign default risk, as measured by CDS-implied [credit default swap] default probability globally.

The decrease in CDS is a reflection of the steady increase in global investors’ confidence in the Pakistani economy, the PM was quoted as saying in a statement released by the Prime Minister’s Office (PMO).

He said that by the end of the previous government, Pakistan was on the verge of default. “The report is a very important milestone for us and a manifestation of our development journey.”

“With the tireless efforts of the Government of Pakistan and the cooperation of the Pakistani and global business community, the promise of Pakistan’s development seems to be fulfilled,” he said.

As per the report, Pakistan stood second only to Turkey in Global Emerging Market (EM) Rankings in Default Risk Reduction, as the country has recorded one of the sharpest drops in sovereign default risk globally over the last 15 months, from Jun-24 till Sep-25.

Notably, Pakistan is the only country in the EM sample showing consistent quarterly improvement across the past year. The country’s default probability has decreased by a massive 2,200 basis points.

Earlier, Advisor to Finance Minister Khurram Schehzad said that the sharp decline in the country’s risk signals strengthening investor confidence, underpinned by macroeconomic stabilisation, structural reforms, timely debt servicing, staying the course with the IMF programme and positive ratings actions from S&P, Fitch, and Moody’s.