Amid ongoing regional geopolitical tensions between the US and Iran, Pakistan’s economy has achieved a major international milestone. Global rating agency S&P Global has upgraded Pakistan’s sovereign credit rating from ‘B-‘ to ‘B’ with a stable outlook, attributing the positive revision to ongoing structural reforms under the IMF program, strict fiscal discipline, and improved foreign exchange reserves.
In tandem with the rating upgrade, the Economic Coordination Committee (ECC) of the Cabinet has approved targeted incentive schemes worth over Rs 255 billion to aggressively boost national exports and industrial output.
Key Highlights of the Economic Package & Credit Upgrade:
- Sovereign Rating Upgrade: S&P Global upgraded Pakistan’s long-term sovereign credit rating to ‘B’, signaling growing global confidence in the country’s macroeconomic management and external debt stability.
- Export Finance Scheme (EFS): Under the ECC decision, exporters will be provided working capital loans at a fixed concessionary rate of 8.5% for six months, backed by a Rs 58 billion government subsidy in FY 2027.
- Export Incentive Projects: The government has approved three major export enhancement initiatives worth approximately Rs 98 billion for implementation during FY 2027.
- Industrial Modernization Credit: To encourage industrial expansion and modern machinery procurement, a massive credit facility of Rs 350 billion has been earmarked for industrial projects nationwide.
