S&P Global Ratings has upgraded Pakistan's long-term sovereign credit rating from 'B-' to 'B', citing improvements in the country's external position and gradual macroeconomic stabilization.

The agency also affirmed Pakistan's short-term sovereign credit rating at 'B' and raised its transfer and convertibility assessment to 'B' from 'B-'.

This upgrade reflects increased confidence in Pakistan's economic resilience, despite ongoing challenges such as fiscal imbalances and inflationary pressures.

The stable outlook indicates that while the country is on a path toward recovery, sustained reforms and policy consistency will be critical to maintaining this progress.Analysts note that the decision follows recent measures aimed at stabilizing the currency, reducing public debt, and attracting foreign investment.However, risks remain due to geopolitical tensions, energy shortages, and structural economic weaknesses.

The upgrade could enhance Pakistan's access to international capital markets but requires continued efforts to address governance issues and improve transparency.Overall, this development signals a cautiously optimistic assessment of Pakistan's economic trajectory.