S&P Global Ratings has upgraded Pakistan's long-term sovereign credit rating to 'B' from 'B-', citing an improving external position and gradual macroeconomic stabilization, while assigning a stable outlook. The agency also upgraded Pakistan's transfer and convertibility rating to 'B' from 'B-'. The upgrade is based on strengthened institutional capacity, enabling the implementation of critical IMF program reforms that have quickened fiscal consolidation and rebuilt external buffers. The IMF's Extended Fund Facility program has been critical in restoring macroeconomic stability and replenishing foreign reserves, which are now sufficient to cover external principal payments for the next 12 months.