KARACHI: Finance Minister’s Adviser Khurram Schehzad on Tuesday highlighted Barclays’ decision to upgrade Pakistan’s sovereign debt to “overweight”, saying the move reflected growing recognition of the country’s improving economic fundamentals by international investors and capital markets.
In a post on X, Schehzad said Barclays had reaffirmed “the Pakistan story”, citing a stronger external and fiscal position, Pakistan’s strategic importance linking the Middle East and Central Asia and the potential for positive rating actions ahead.
According to a Bloomberg report cited by the adviser, Barclays upgraded Pakistan dollar bonds to overweight after lowering the rating in May, citing improved oil market prospects.“The resilience of Pakistan’s external position cannot be ignored and it underpins the more optimistic view”, Barclays analysts, including Avanti Save, said in a note quoted by Bloomberg.
The analysts said Pakistan’s economy continued to demonstrate stability, supported by an improved fiscal position, steadier external buffers, relatively steady foreign exchange reserves and a moderate growth and inflation outlook.
According to the Bloomberg report cited by the adviser, Barclays recommended buying Pakistan’s 2031, 2036 and 2051 sovereign dollar bonds, as well as the 2031 bond issued by Wapda, while recommending investors sell the five-year Pakistan credit default swap.
The analysts further said that while credit rating upgrades had taken longer to materialise, they believed rating agencies would review Pakistan’s progress positively in the second half of 2026.
