Islamabad:
The adviser of the Minister of Finance, Khurram Schehzad, said on Sunday that in a remarkable change, Pakistan has become one of the most efficient countries in terms of reducing its risk of defect, recording one of the largest decrees worldwide.
According to the latest data published by Bloomberg, Pakistan is distinguished in the world as the 2nd most improved economy in terms of reducing the risk of sovereign defect, as measured by the probability of defect involved by CDS, it posted on the social media site.
He declared that Pakistan was held only 2nd in Turkey in the world ranking of emerging markets (EM) in the default risk reduction, because the country has recorded one of the strongest decreases in the risk of sovereign defect on a global scale in the last 15 months (since June 24 at Sept-25).
In particular, Pakistan is the only country in the EM sample showing a coherent quarterly improvement in the past year, he said, adding that the default probability has decreased by 2,200 base points.
He noted that this marks the clearest decline among the main EMS, ahead of South Africa (3%), EI Salvador (2%).
Khurram argued that, on the other hand, countries like Argentina, Egypt, Nigeria and others have seen their default risks increase. This sharp decline in the country’s risk signals strengthening the confidence of investors, supported by macroeconomic stabilization, structural reforms, the appropriate debt service, monitoring of the IMF program and the positive actions of S&P, Fitch and Moody’s notes, he added.
The advisor observed that Pakistan regularly reconstructs the credibility of the market, standing out as one of the most improved sovereign credit stories in the emerging market universe.
