Pakistan has achieved the sharpest decline in default risk worldwide over the past 12 months, according to the latest Bloomberg Investment data. The country’s default probability dropped from 59% to 47%, marking an improvement of 1,100 basis points—the largest among major markets.
Other nations, including Argentina (-7%), Tunisia (-4%), and Nigeria (-5%), saw smaller declines, while risks rose in Turkey, Ecuador, Egypt, and Gabon.
Breaking: Pakistan Leads the World in Sovereign Risk Improvement – Tops Global EM Rankings
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… pic.twitter.com/FX4fR8QVFD
— Khurram Schehzad (@kschehzad) June 28, 2025
The improvement reflects growing investor confidence driven by Pakistan’s economic reforms, successful IMF negotiations, timely debt repayments, and credit rating upgrades from agencies like S&P and Fitch. This progress strengthens Pakistan’s position in global financial markets and enhances its investment climate.
Prime Minister Shehbaz Sharif hailed the turnaround as a “miracle,” while officials emphasized continued economic stability efforts.
