Latest news with #GlobalEMRankings
Express Tribune
2 hours ago
- Business
- Express Tribune
Pakistan records largest drop in default risk among emerging markets
Listen to article Pakistan has achieved the world's steepest decline in sovereign default risk over the past year, leading Bloomberg Intelligence's Global Emerging Market (EM) Rankings for credit risk improvement, according to data released by the finance minister's adviser on Saturday. Bloomberg, the international financial information and media firm, has described Pakistan as the most improved economy in terms of reducing default risk. The report attributes this progress to renewed investor confidence, macroeconomic stabilisation, structural reforms, successful engagement with the International Monetary Fund (IMF), timely debt repayments, and positive credit outlooks from global rating agencies including Fitch and S&P. According to Bloomberg's research division, Pakistan's credit default swap (CDS)-implied probability of default declined from 59 per cent to 47 per cent over the last 12 months — an 11 percentage point drop and the largest reduction among emerging markets globally. This improvement outpaces other countries such as Argentina, Tunisia, and Nigeria, while some nations including Egypt, Gabon and Turkey have seen their default risks increase. Breaking: Pakistan Leads the World in Sovereign Risk Improvement - Tops Global EM Rankings As per the latest data posted by Bloomberg Intelligence, Pakistan stands out globally as the most improved economy in terms of reduction in sovereign default risk, as measured by… — Khurram Schehzad (@kschehzad) June 28, 2025 Khurram Shehzad, adviser to the finance minister, took to social media platform X to highlight Pakistan's achievement, stating that the country 'stands out globally as the most improved economy in terms of reduction in sovereign default risk.' Read More: Pakistan, WB boost ties with $40b framework He further added that this 'marks the sharpest decline among major emerging markets,' and credited factors such as macroeconomic stabilisation, structural reforms, successful IMF engagement, and timely debt repayments for the positive trend. 'This is a resounding signal to global investors that Pakistan is not only back on the map — it is moving forward with stability, credibility, and reform at its core,' he said. Prime Minister Shehbaz Sharif welcomed the Bloomberg report, expressing satisfaction over the acknowledgment of Pakistan's economic stability. 'The report acknowledges important institutional reforms in various sectors, successful agreement with the IMF, and timely loan repayments, which are definitely evidence of improvement in the government's economic situation,' he remarked. Also Read: Global ranking of green passport improves He added that Pakistan was among the few countries to show the most economic improvement in the past year, according to Bloomberg's data, and said the country was advancing swiftly towards a stronger economic future. The prime minister attributed these gains to the sustained efforts and dedication of the government's economic team.
Business Recorder
8 hours ago
- Business
- Business Recorder
Pakistan leads emerging markets in sovereign risk recovery, says Bloomberg Intelligence
In a positive development on the economic front, Pakistan has emerged as the most improved emerging market in terms of sovereign credit risk, according to the latest analysis by Bloomberg Intelligence. Backed by macroeconomic stabilization, structural reforms, and successful engagement with the International Monetary Fund (IMF), the country has recorded the sharpest decline in default risk globally over the past year—signaling renewed investor confidence and growing financial credibility, said Khurram Schehzad, Advisor to Pakistan's Finance Minister, in a post on social media platform X on Saturday. 'As per the latest data posted by Bloomberg Intelligence, Pakistan stands out globally as the most improved economy in terms of reduction in sovereign default risk, as measured by Credit default swaps (CDS)-implied probability. 'Pakistan topped Global EM Rankings in default risk reduction, as the country has recorded the largest drop in sovereign default risk globally over the last 12 months,' said Schehzad. A CDS is a financial derivative that allows an investor to swap or offset their credit risk with that of another investor. To swap the risk of default, the lender buys a CDS from another investor who agrees to reimburse them if the borrower defaults. Citing Bloomberg Intelligence data, default probability was down from 59% to 47%, an 11 percentage point improvement, said Schehzad. 'This marks the sharpest decline among major emerging markets, ahead of Argentina (-7%), Tunisia (-4%), and Nigeria (-5%). In contrast, countries like Turkey, Ecuador, Egypt, and Gabon have seen their default risks rise.' Schehzad was of the view that the decline in Pakistan's risk signals renewed investor confidence—fueled by 'macroeconomic stabilisation, structural reforms, successful IMF engagement and timely debt repayments, and improved credit outlooks by S&P, Fitch, and others'. 'Pakistan is not only back on the map—it is moving forward with stability, credibility, and reform at its core,' he said.
