Islamabad: Fitch Ratings has elevated Pakistan’s long-term foreign-currency issuer default rating to ‘B-‘ from ‘CCC+’, reflecting the firm’s increased confidence in the country’s efforts to address budget deficits and pursue structural reforms.

The credit rating agency announced a stable outlook for Pakistan, indicating optimism that the nation’s economic strategies will lead to sustained progress. This development marks a notable improvement in Pakistan’s financial standing, as it moves away from a lower rating that indicated higher risk for investors.

Finance Minister Muhammad Aurangzeb expressed approval of the upgrade, describing it as a robust endorsement of the government’s economic reforms and policies. Aurangzeb highlighted that the recognition by Fitch underscores the stability of Pakistan’s economic outlook.

The announcement follows recent moves by the Pakistani government to strengthen fiscal discipline and implement key economic reforms, aimed at stabilizing the economy and boosting investor confidence. The upgrade suggests that these efforts are beginning to resonate positively with international credit rating agencies.