S&P hints at upgrading Pakistan’s credit rating

S&P Global Ratings has hinted at upgrading Pakistan’s credit rating to ‘B’ following the new political government that comes into power post-Thursday (February 8) elections in the country, but the change in the rating would largely depend on the economic roadmap of the new rulers. To upgrade the rating, the global rating agency will closely watch the new government’s moves towards securing the next International Monetary Fund loan programme after the ongoing one, worth $3 billion, is completed in March 2024. The new programme will ensure the government continues to repay the maturing foreign debt on time. According to the global media outlet Bloomberg, S&P sees a path for Pakistan’s upgrade to ‘B’ after the election results. Pakistan is currently rated ‘CCC+’ by the agency. The credit rating ‘B’ suggests the nation has the capacity to repay the foreign debt on time but still faces a degree of uncertainty that could lead to missing the repayment obligation later on.