The yield on Pakistan's Dollar Bonds has significantly dropped, marking a 3-year low.

This shift is largely driven by economic stabilization policies, which have helped pull the country back from the brink of default and stabilize the economy.

With yields now in single digits, there’s a strong likelihood of an upgrade in Pakistan’s credit rating in the near future. Such an upgrade would open the door for Pakistan to borrow from both commercial and international debt markets at more favorable rates, providing essential support to its low foreign exchange reserves.