As 2025 draws to a close, Pakistan presents a mixed economic picture. On a positive note, the nation’s external vulnerability has lessened, with foreign exchange reserves now covering over two months of imports. There has also been a modest rise in GDP growth and a significant drop in inflation. This juncture offers a timely opportunity to examine Pakistan’s position in various international rankings, which shape how foreign investors and financial institutions perceive the country’s strengths and weaknesses. These rankings also highlight priority areas in the economy and governance that require improvement to attract more foreign investment, commercial bank loans, and facilitate global bond offerings.

Tracking changes in these rankings over time provides a relatively objective measure of a government’s performance. Improvement across most indices typically signals effective governance. This analysis delves into Pakistan’s standing across seven critical global benchmarks, offering a comprehensive view of its current international footprint.

The assessment begins with credit ratings, a fundamental gauge of a country’s creditworthiness. Pakistan currently holds a B- rating from S&P and a Caa rating from Moody’s, with no rating from DBRS. Its overall score translates to a ranking of 131st out of 155 countries, placing it in the 84th percentile (where a higher percentile indicates a worse position). While this remains low, the successful continuation of the IMF program could spur improvement in 2026. Within South Asia, Pakistan fares better than Sri Lanka (145th) but trails behind Bangladesh (99th) and India (61st).

On the Financial Development Index, which measures the development, access, and efficiency of financial institutions and markets, Pakistan ranks 103rd out of 178 nations (58th percentile). Its score of 0.220 is below those of Bangladesh, Sri Lanka, and India. The ranking reflects Pakistan’s large and diversified financial sector, though significant government borrowing from banks has likely negatively impacted its position.

A brighter spot is the Global Innovation Index, where Pakistan ranks 91st out of 133 countries (68th percentile), outperforming Bangladesh. This highlights notable innovation, particularly within the small and medium enterprise (SME) sector, which exports sophisticated products like surgical instruments, sports goods, medicines, and value-added textiles.

In the World Bank’s Ease of Doing Business Index, Pakistan ranks 108th, performing better than Bangladesh (168th) and placing in the 57th percentile. The country shows strength in starting a business, protecting minority investors, and resolving insolvency but lags in registering property, paying taxes, enforcing contracts, and obtaining electricity.

The Index of Economic Freedom places Pakistan with a score of 49.1 out of 100 (72nd percentile), closely clustered with other South Asian nations. Pakistan performs relatively well in trade freedom, investment freedom, government spending, and tax burden but scores poorly on property rights, government integrity, judicial effectiveness, and fiscal health.

The Corruption Perceptions Index ranks Pakistan 135th out of 180 countries (75th percentile), again performing better than Bangladesh. However, the ranking has worsened over the past decade, moving from 117th in 2015, which aligns with recent IMF concerns about corruption.

Most concerning is Pakistan’s position on the Human Development Index (HDI), where it ranks lowest in South Asia at 168th (87th percentile), categorized as having a low level of human development. Its performance has deteriorated over the last decade, with education being the weakest component.

In summary, Pakistan’s percentile rankings vary widely across these seven indices. The country performs relatively better in ease of doing business, financial development, and innovation but has very low standings in credit rating and human development, with some rankings worsening over the past ten years.

Overall, concerted efforts are needed to improve Pakistan’s international standing to foster a more positive perception among potential foreign investors. This must be coupled with reversing the current slump in domestic private investment, which is sending adverse market signals.