Pakistan Leads Global Emerging Markets in Risk Improvement, Bloomberg Reports
Pakistan has topped Bloomberg Intelligence’s Global Emerging Market (EM) Rankings for sovereign risk improvement, recording the sharpest decline in sovereign default risk among emerging markets over the past 12 months.
The country’s credit default swap (CDS)-implied probability of default fell from 59% to 47%, an 11 percentage point (1,100 basis points) improvement, the largest drop globally, surpassing countries like Argentina, Tunisia, and Nigeria.
The Bloomberg Intelligence report highlighting Pakistan’s sharpest drop in sovereign default risk and its top ranking for risk improvement among emerging markets was issued on June 28, 2025.
This significant reduction in default risk signals renewed investor confidence, driven by macroeconomic stabilisation, structural reforms, successful engagement with the International Monetary Fund (IMF), and timely debt repayments. Credit rating agencies such as Standard & Poor’s and Fitch have also improved Pakistan’s credit outlook, reflecting the country’s progress toward economic stability and reform.
Khurram Schehzad, Adviser to Pakistan’s Finance Minister, highlighted this achievement as a resounding signal to global investors that Pakistan is “not only back on the map—it is moving forward with stability, credibility, and reform at its core”.
Pakistan leads emerging markets in sovereign risk recovery due to its substantial reduction in default probability, structural economic reforms, and improved investor sentiment, as recognized by Bloomberg Intelligence and other global financial institutions.
