Lahore: The US-based bond credit rating agency, Moody\u2019s Investor Services, has notified a \u2018stable outlook\u2019 rating for Pakistan\u2019s banking sector over the next 12-18 months \u2013 acquired by the country in the aftermath of a robust funding effort sponsored by various international financial institutions and other states, a news source reported. <\/p>\n\n\n\n
The report anticipates that the government will remain\nwilling to support at least the systematically important banks in case of need.\nHowever, its ability to do so will be limited by fiscal challenges which is\nreflected by its B3 rating.<\/p>\n\n\n\n
Moody\u2019s Senior Vice President Constantinos Kypreos said that\nPakistan\u2019s sovereign credit profile had improved in recent months; benefiting\nthe banks through their high exposure to government securities, which account\nfor around 40pc of their assets. <\/p>\n\n\n\n
The report noted that operating environment would improve due\nto ongoing infrastructure projects, development in power generation sector and\ndomestic security \u2013 all of which are shoring up Pakistan\u2019s economic activity. <\/p>\n\n\n\n
The agency did, however, add that economic growth would still\nremain subdued although the exchange rate has stabilized since June 2019 and\nmarkets expect the State Bank of Pakistan to lower policy rates over the next\nfew years.<\/p>\n","protected":false},"excerpt":{"rendered":"
Lahore: The US-based bond credit rating agency, Moody\u2019s Investor Services, has notified a \u2018stable outlook\u2019 rating for Pakistan\u2019s banking sector over the next 12-18 months \u2013 acquired by the country in the aftermath of a robust funding effort sponsored by various international financial institutions and other states, a news source reported. The report anticipates that the government will remain willing to support at least the systematically important banks in case of need. However, its ability to do so will be limited by fiscal challenges which is reflected by its B3 rating. Moody\u2019s Senior Vice President Constantinos Kypreos said that Pakistan\u2019s sovereign credit profile had improved in recent months; benefiting the banks through their high exposure to government securities, which account for around 40pc of their assets. The report noted that operating environment would improve due to ongoing infrastructure projects, development in power generation sector and domestic security \u2013 all of which are shoring up Pakistan\u2019s economic activity. The agency did, however, add that economic growth would still remain subdued although the exchange rate has stabilized since June 2019 and markets expect the State Bank of Pakistan to lower policy rates over the next few years.<\/p>\n","protected":false},"author":57,"featured_media":61098,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[18228],"persona":[],"class_list":["post-61095","post","type-post","status-publish","format-standard","has-post-thumbnail","tag-pakistans-banking-sector-outlook-stable-moodys"],"acf":[],"yoast_head":"\n