Citing a report published in Bloomberg News, Adviser to the Finance Minister Khurram Schehzad on Sunday noted Pakistan has recorded one of the sharpest drops in default risk in Emerging Markets, second only to Turkiye.
In a post on X, Schehzad said the country had recorded a 22% reduction in sovereign default risk from June 2024 to September 2025, as measured by CDS-implied default probability. This is the sharpest decline among major Ems, he said, as default risks rise in countries such as Argentina, Egypt, and Nigeria.
The adviser said the decline in default risk signaled strengthening investor confidence in the economy. He said investor confidence improved due to structural reforms, timely debt servicing, staying the course with the International Monetary Fund (IMF) program, and positive ratings from global agencies.
Schehzad said Pakistan is steadily rebuilding market credibility, adding the country had also posted the most improved sovereign credit stories in EMs.
Pakistan is currently in the midst of a review with the IMF. During negotiations, per local media, Pakistan has sought some concessions in view of the devastating floods that have severely impacted the country’s agriculture sector.