S&P Global Ratings has upgraded Pakistan's long-term sovereign credit rating to 'B' from 'B-', citing an improving external position and gradual macroeconomic stabilization.
The agency also raised its transfer and convertibility assessment to 'B' from 'B-', reflecting reduced risk of capital controls or restrictions on currency convertibility.
The upgrade marks a significant step in the country's credit profile recovery.
It comes shortly after 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 improved fiscal discipline as key drivers for the positive reassessment.
For investors, the S&P move validates the broader trend of improving sentiment toward Pakistan's debt instruments.