Barclays has upgraded Pakistan’s sovereign dollar bonds to “overweight” following a previous downgrade, citing a more favorable outlook for the oil market and increased resilience in Pakistan’s external financial position. The upgrade, detailed in a Bloomberg report, suggests the bonds are expected to outperform industry averages over the next year. Analysts highlighted Pakistan’s improved fiscal stability, stronger foreign reserves, and moderate growth and inflation as key factors. Continued support from international financing and Pakistan’s strategic geopolitical importance were also noted as positive influences. Barclays recommends purchasing specific Pakistani dollar bonds maturing in 2031, 2036, and 2051, alongside a Wapda bond, and selling a five-year credit default swap. The financial institution anticipates potential positive credit rating reviews from major agencies in the second half of 2026, reflecting growing investor confidence in Pakistan’s improving economic fundamentals.