Global credit rating agency Moody’s has upgraded Pakistan’s banking sector outlook from stable to positive, citing resilient financial performance and improving macroeconomic conditions. According to Bloomberg, “The positive outlook mirrors the Government of Pakistan’s own positive outlook,” Moody’s stated, noting that Pakistani banks maintain significant exposure to sovereign risk through substantial holdings of government securities. Economic growth projections have brightened considerably, with Moody’s forecasting a 3% expansion in 2025, up from 2.5% in 2024 and a contraction of 0.2% in 2023.
