The Bank of Punjab (BoP) has been upgraded to a long-term entity credit rating of AAA from AA+ by the Pakistan Credit Rating Agency (PACRA).
The move marks a historic milestone for the lender, which becomes the first and only provincial bank in Pakistan to achieve the top-tier rating.
The upgrade reflects PACRA's assessment of the bank's strengthened financial position and risk profile.
The rating action arrives amid a broader shift in market sentiment toward Pakistan's financial sector.
Earlier this year, Barclays upgraded its rating on Pakistan's dollar-denominated sovereign bonds to overweight, reversing a downgrade issued just one month prior.
The British lender cited a more favorable outlook for global oil markets and emerging signs of economic stabilization within the country as key drivers for the change in stance.