According to Bloomberg’s latest data, Pakistan has emerged as a standout performer in the global emerging markets, which has recorded a fastest decline in autonomous default risk over the past 15 months.
Finance Minister Advisor, Khurram Sheikhzad, Lighted up On Sunday, Pakistan is now the second best economy in the world in terms of low default possibility, as is measured by credit default swap (CDS).
A credit default sweep (CDS) -It is likely that how much is the possibility that a borrower, such as a company or a country, will fail to pay his debt.
According to the International Monetary Fund (IMF), this estimate comes from the CDS market price, which is a child of financial insurance investors, used to avoid the risk of explanation, according to the International Monetary Fund (IMF).
When CD prices decrease, it indicates that investors consider borrowers a low risk. Therefore, the rapid decline in the possibilities of Pakistan’s CDS means that global investors now see the country less likely to be defaulted on their debt.
From June 2024 to September 2025, Pakistan’s default possibility has fallen due to surprising 2,200 twenty points. The adviser said it was the biggest decline in the emerging markets, which pushes Pakistan completely behind Turkey in the global ranking to reduce the default threat.
In particular, Pakistan is the only country in the emerging market model that has shown improvement in the quarter of the quarter during the last year.
In comparison, other economies such as South Africa and El Salvador have seen a slight decline in the pre -determined risk, while countries like Argentina, Egypt, and Nigeria have increased.
He attributed this rapid improvement to economic stability, ongoing structural reform, timely debt service, and a combination of Pakistan’s commitment to its IMF program. The country has also benefited from the positive steps of the ranking by major agencies, including S&P, Fitch, and Moody.
“This rapid reduction in danger indicators reinforces investors’ confidence in the direction of Pakistan’s economic management and policy,” Shehzad said. “Pakistan is permanently rebuilding its market reputation and stands as one of the best autonomous credit stories in the emerging market universe.”
The adviser said that the message is clear to the investors: Pakistan’s permanent progress is separating it, which is creating a market to see the global emerging market scenario.