Archive · 14 Aug 2025
Moody's Upgrades Pakistan's Rating, Citing Economic Progress
Moody's, a company that rates how likely countries are to pay their debts, increased Pakistan's credit rating.
This happened because Pakistan's economy is showing signs of improvement.
Foreign reserves increased and inflation went down.
The IMF is also helping Pakistan.
While this is good news, Pakistan still has a lot of debt.
The government is optimistic about the changes.
Moody's upgraded Pakistan's credit rating to Caa1 from Caa2.
The upgrade reflects improvements in Pakistan's external position, supported by IMF reforms.
Pakistan's foreign exchange reserves reached $14.3 billion by July 2025.
Inflation fell to 4.1% and GDP growth is estimated at 2.7% for FY2025.
Despite improvements, Pakistan's debt burden remains a challenge.
- Who
- Moody's, Pakistan's government.
- What
- Moody's upgrade of Pakistan's credit rating.
- When
- August 14, 2025
- Where
- Pakistan
- Why
- Due to improving external position and reforms under the IMF.
- Credit Rating (Before)
- Caa2
- Credit Rating (After)
- Caa1
- Foreign Exchange Reserves (July 2025)
- $14.3 billion
- July Retail Inflation
- 4.1%
- FY24 GDP Growth
- 2.5%
- FY25 GDP Growth (Estimate)
- 2.7%
- Pakistan's Debt
- $267 billion (May 2025)
Sources
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