ISLAMABAD: In a positive sign for the Pakistani economy, global rating agency Moody’s has revised its outlook for the country’s banking sector from negative to stable.
According to Moody’s, the rate of economic growth in Pakistan this year may be up to 2 percent, while the inflation rate will decrease from 29 percent to 23 percent compared to last year.
According to the rating agency, the profitability of the banking sector may decline next year due to higher interest rates and higher taxes. Pakistan helped banks in difficult times without harming depositors.
According to Moody’s, the banks’ profitability was helped by better funding, liquidity, economic challenges and the political crisis. Moody’s says that the economic and financial stress on Pakistan’s banking system is easing.
While Moody’s upgraded its outlook on Pakistan’s banking sector, it downgraded its outlook for the banking sector in a number of European countries.
It changed the outlook from negative to stable for the banking sectors of Germany, Britain and France, Belgium, the Netherlands, and Sweden
