In a major boost to investor confidence and Pakistan’s global economic standing, Bloomberg has ranked Pakistan among the world’s top emerging economies, citing a remarkable drop in the country’s default risk.

According to the latest report by the globally trusted financial data firm, Pakistan’s probability of default has plummeted from 59% to 47% over the last 12 months — a significant improvement of 1100 basis points.

This positive shift has been attributed to the country’s growing economic stability, driven by key financial reforms and successful engagement with international institutions. The report highlights that improved foreign exchange reserves, timely loan repayments, and a renewed agreement with the International Monetary Fund (IMF) have all contributed to this economic turnaround.

Bloomberg’s analysis shows that while several other emerging markets like Argentina, Tunisia, and Nigeria have seen minor improvements in their financial risk profiles, Pakistan’s progress stands out. Countries such as Turkiye, Ecuador, Egypt, and Gabon, meanwhile, remain on the high-risk radar.

"Pakistan’s significant reduction in default risk sends a powerful message to the global financial community," the Bloomberg report noted, adding that the development marks a major milestone in the country’s road to recovery. The ranking also serves as an international endorsement of the government’s ongoing efforts to stabilize and grow the economy.

Prime Minister Shehbaz Sharif welcomed the report, calling it a clear recognition of the growing economic stability and the performance of his government’s economic team. “Pakistan is now among the few countries that have demonstrated real economic progress in the past year,” he said. The premier credited this improvement to consistent financial discipline, better revenue generation, and reforms aimed at long-term sustainability.

Increased remittances and a steady rise in exports have further strengthened Pakistan’s external finances, which Bloomberg sees as another sign of macroeconomic resilience. Analysts say this progress is likely to improve investor sentiment, leading to increased foreign inflows and renewed trust from global financial markets.