ISLAMABAD – Pakistan apparently shocked the world by dramatically reducing its risk of default. The country of around 242 million was once feared on the brink of economic collapse, but is now the only nation globally showing consistent improvement quarter after quarter.
A report shared by Bloomberg, quoting financial adviser Khurram Shehzad revealed that between June 2024 and September 2025, Pakistan’s default risk plunged by a staggering 2,200 points, which is an unprecedented achievement and grabbed international attention.
Experts link Pakistan’s success to bold economic reforms, strict adherence to IMF programme, timely debt repayments, and disciplined government policies. This strategy restored investor confidence, propelling Pakistan ahead of struggling economies like South Africa, Egypt, Nigeria, Argentina, and El Salvador.
With positive ratings from Moody’s, Fitch, and S&P, Pakistan is now hotspot for foreign investment. The government members said Pakistan is on the path to becoming a stable and confident economy as economic revival promises tangible benefits for everyday Pakistanis.
Analysts predict that if the government keeps up the momentum, Pakistan could soon emerge as a major player on the global financial stage.
Pakistan’s economy likely grew 2.7% in fiscal year, slightly up from 2.5% the previous year, but below the government’s original target of 3.6%. Growth constrained by weaker manufacturing output and the lowest agricultural growth and now record floods.
State Bank interest rates stays at 11% to support recovery, while the fiscal deficit was 2.6% of GDP and inflation averaged 4.6%.
Punjab introduces Flood Relief ATM Cards to aid affected citizens
