The author treats mid-2026 rating moves as a step out of distress: Moody’s Aug. 24 lift from Caa1 to B3 (stable), S&P in July to B from B− (stable), Fitch at B− stable—still junk, but a lower perceived default risk.

Cited fundamentals: SBP reserves from ~$6.7bn in late 2022 to ~$17–18bn (about three months of imports); GDP ~3.6–3.7% in FY2025–26; single-digit inflation; interest payments down from ~45% to ~35% of revenue; IMF EFF/RSF reviews.

Benefits claimed: cheaper market access, rollovers, sukuk/bonds, and private investment—if politics and policy do not slip. The piece calls B a platform, not the finish line.

Pakistan has now entered into an important phase for its economy in 2026, as the nation gets back to its sovereign credit ratings in the B range due to the tough fiscal and external imbalances that had previously plagued the economy and led to multiple shocks to the economy. In addition to reflecting improvements to Pakistan’s ratings, it also reflects the rising global recognition of the stabilization and reforms that Pakistan has undertaken.

Some of the most important developments were made in the latter part of 2026, with Moody’s having upgraded Pakistan’s sovereign credit rating on 24th August 2026 from Caa1 to B3 with a stable outlook. Before that, in July, S&P Global Ratings improved Pakistan’s ratings to B from B-, again with a stable outlook. The rating that Fitch Ratings has given to Pakistan is B- with a stable outlook.

The significance of this shift lies in what it says about Pakistan’s ability to meet its financial obligations. Moody’s move from Caa1 to B3 represents a meaningful........

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