Pakistan among top countries showing sharp decline in default risk: Bloomberg

Pakistan has emerged as one of the few countries showing a significant reduction in default risk, ranking second among the world’s emerging economies, according to the latest report by the U.S. financial publication Bloomberg.

As reported by the Associated Press of Pakistan (APP), Bloomberg’s new data indicates that Pakistan has demonstrated one of the largest improvements in lowering bankruptcy concerns among developing nations.

Only Türkiye ranks ahead of Pakistan in this category.

Over the past 15 months (June 2024 to September 2025), Pakistan’s default risk has improved by 2,200 basis points, marking a consistent upward trend in every quarter — a reflection of the country’s sustained economic recovery.

In contrast, countries such as South Africa and El Salvador showed minimal improvement, while Egypt, Nigeria, and Argentina saw further deterioration in their financial outlooks.

Economists view this progress as evidence of restored investor confidence in Pakistan, driven by macroeconomic stability, structural reforms, timely debt repayments, adherence to the IMF program, and upgraded ratings from international agencies such as S&P, Fitch, and Moody’s.

Analysts say these developments signal that Pakistan is transitioning from a state of default risk to a stable, resilient, and reform-oriented economy.