Moody's maintains stable outlook for Pakistani banks
Moody's predicted that Pakistani banks would remain in profit.
KARACHI (Daily Dunya) - Moody s Investors Service has maintained its stable outlook on Pakistan s banking system, reflecting the rating agency s expectation that the country s banks will continue to benefit from a stable deposit base, high liquidity buffers and an accelerating economic growth.
Moody’s has pegged Pakistan’s economic growth at 4.9pc for current fiscal year. Moody’s further narrated that Pakistani banks would remain in profit due flourishing GDP rate and lending opportunities of banks will swell by 12pc to 14pc.
Moody’s expects problem loans will decline to around 10% of total loans by the end of 2017 and will fall further in 2018 compared with 11.1% at the end of June 2016.
CPEC-linked projects will expand economic activities but security concerns can pose threats to economic growth, narrated Moody’s.
Media reports state Pakistan’s GPD has not crossed 5pc mark in last ten years.
