Moody's Investors Service has upgraded Pakistan's credit rating, citing improved economic conditions and strengthened government liquidity. The international rating agency raised the country's rating from Caa3 to Caa2, indicating a lower risk of default.

This positive assessment follows a staff-level agreement with the International Monetary Fund (IMF) for a $7 billion loan. The IMF's support has provided greater certainty regarding Pakistan's external financing sources.

Previously, Moody's had maintained a lower rating for Pakistan due to concerns about debt affordability and investment risks. However, the recent upgrade reflects a more optimistic outlook for the country's economic prospects. see Moody's page