S&P Global Ratings has upgraded Pakistan's long-term sovereign credit rating to 'B' from 'B-', marking a step up in the country's credit profile.
The agency also raised its transfer and convertibility assessment to 'B' from 'B-'.
The upgrade reflects an improving external position and gradual macroeconomic stabilization, according to the rating agency.
S&P cited progress in restoring external buffers as a key driver behind the decision, noting that the country's ability to service its debt has strengthened.
This move aligns with a broader shift in market sentiment toward Pakistan's sovereign debt.
Just weeks ago, Barclays upgraded its rating on Pakistan's dollar-denominated sovereign bonds to overweight, reversing a downgrade issued only a month prior.