Islamabad (Commerce Desk): Global credit rating agency Moody’s has revised the outlook for Pakistan’s banking sector from positive to stable, a move being seen as a sign of growing balance in the financial sector.
According to Moody’s outlook report, Pakistan’s economic conditions are showing gradual signs of improvement, although the pace of overall economic recovery remains slow. The report states that the overall performance of the country’s banks is expected to remain stable over the next 12 to 18 months.
The report notes that high interest rates and pressure from credit risks continue to persist, while government fiscal challenges have been identified as a major concern for the banking sector.
Moody’s has projected Pakistan’s gross domestic product (GDP) growth at 3.5 percent for 2026. However, concerns related to external financing, inflation, and policy implementation remain, which could impact the future outlook.
