Pakistan Banking Sector gets a blow from Moody’s

Pakistan Banking Sector gets a blow from Moody’s
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LAHORE: Moody’s investors’ service on Monday changed its outlook for Pakistan’s banking system down (B3 negative) to negative from stable.

According to the report, the banks’ operating conditions will be difficult due to slow down in Pakistan’s real GDP growth to 4.3% in the current financial year 2018-19, down from 5.8% in FY18.

Moody’s said tighter domestic monetary conditions fueled by a wide current account deficit and low foreign exchange reserves will impact economic activity.

Since December 2017, the rupee has depreciated 30% against the greenback and interest rates have risen by 450 basis points (bps) since January last year and inflation is increasing, said Moody’s.

Economy