Moody's Global Ratings upgraded Pakistan's local- and foreign-currency issuer and senior unsecured debt ratings to B3 from Caa1 on Aug. 24, 2026, while maintaining a stable outlook. It also raised the senior unsecured MTN programme rating to (P)B3 from (P)Caa1 and upgraded the backed foreign-currency senior unsecured ratings of The Pakistan Global Sukuk Programme Co Ltd. The upgrade reflects stronger governance and expectations that recent improvements in Pakistan's external and fiscal position can be sustained. Rising foreign-exchange reserves and continued macroeconomic stabilization have reduced external vulnerability risks, while monetary easing and improved fiscal performance have lowered domestic financing costs and strengthened debt affordability. Moody's also said Pakistan's credit profile has become more resilient to external shocks, including the ongoing Middle East conflict. The agency cautioned that a fragile external position, weak debt affordability, a narrow revenue base and limited capacity to attract investment and boost productivity remain constraints on the B3 rating. Pakistan's local- and foreign-currency country ceilings were raised to B1 and B3 from B2 and Caa1, respectively. Standard & Poor's rates Pakistan B with a stable outlook.