Yields on Pakistani Eurobonds Drop as S&P Upgrades Country’s Credit Rating
In a major boost to investor confidence, yields on Pakistani Eurobonds fell globally on July 25, 2025, following S&P Global’s credit rating upgrade for Pakistan from ‘CCC+’ to ‘B-’. The announcement signaled growing optimism around the country’s economic stability and fiscal outlook.
🌍 Global investors responded positively, with the upgraded rating prompting renewed interest in Pakistan’s sovereign debt instruments.
📈 Economic Recovery Gaining Momentum
According to AKD Securities, Pakistan’s economy grew by 2.7% in FY25, driven primarily by expansion in the industrial and services sectors. However, this growth was partially offset by weaker performance in the agriculture sector, which contributes nearly 24% of the country’s GDP.
📊 S&P’s Outlook: Stable with Growth Potential
In its official report, S&P Global stated that it expects GDP growth to accelerate to 3.6% in the current fiscal year, thanks to ongoing reform measures, improving macroeconomic indicators, and a decline in inflation.
“The stable outlook reflects our expectation that ongoing economic recovery and the government’s efforts to boost revenue will help stabilize fiscal and debt indicators,” said the rating agency.
💡 Confidence in Pakistan’s Fiscal Future
S&P also emphasized that Pakistan is likely to maintain access to official financing, enabling it to meet external debt obligations and successfully roll over commercial credit lines in the coming year.
✅ This improved credit rating not only enhances Pakistan’s borrowing credibility but could also attract further foreign direct investment (FDI) and reduce borrowing costs for future development projects.
🔍 What This Means for You
Whether you’re an investor, policy watcher, or business owner, this development marks a positive turning point for Pakistan’s financial landscape. As reforms take root and economic stability improves, new opportunities may arise in trade, finance, and infrastructure investment.
📌 Stay connected for the latest updates on Pakistan’s economic trends, S&P reports, and global investor sentiment.
