Pakistan tops rankings for risk improvement

In a major economic milestone, Pakistan has emerged as the top-performing market in the Global Emerging Market (EM) Rankings for reducing sovereign credit risk, according to a new Bloomberg Intelligence report.

Over the past 12 months, Pakistan recorded the largest drop in sovereign default risk worldwide, measured through Credit Default Swaps (CDS), highlighting improved creditworthiness and economic stability. The CDS-implied probability of default has decreased significantly, positioning Pakistan at the forefront of the global EM pack.

While Bloomberg's terminal data isn't widely accessible, the report was shared by Finance Minister's adviser Khurram Schehzad on social media platform X, sparking optimism within the financial community.

Schehzad wrote, "As per the latest data posted by Bloomberg Intelligence, Pakistan stands out globally as the most improved economy in terms of reduction in sovereign default risk, as measured by CDS-implied probability." He added, "This is a resounding signal to global investors: Pakistan is not only back on the map—it is moving forward with stability, credibility, and reform at its core."

According to the report, Pakistan's default probability fell from 59% to 47%, marking an 1,100 basis point improvement—sharper than reductions seen in Argentina (7%), Tunisia (4%), and Nigeria (5%). In contrast, countries like Turkey, Ecuador, Egypt, and Gabon saw increases in their risk levels.