Another positive development for Pakistan on the economic front
LAHORE – The international credit rating agency Moody’s has improved its rating for the banking sector of Pakistan.
The Moody’s Investors Service has projected a stable economic outlook for Pakistan with modest growth of 1.5% in the current fiscal year. The growth will accelerate to 4.4% in the next fiscal year, it added.
The trade activities had returned despite ongoing Covid-19 pandemic. However, the activities would remain down in the current fiscal year compared to the previous years.
It also added that government and the State Bank of Pakistan (SBP) initiatives to support the financial system and relief packages for households and industries in the wake of pandemic put the macroeconomy back on the growth track.
The International credit rating agency projected gross domestic product (GDP) growth of 1.5% for the Fiscal Year 2021, which was lower than the expansion of 1.5-2.5% anticipated by Pakistan’s central bank.
The government’s measures in the wake of ongoing pandemic included a fiscal stimulus package of 2.8% of GDP or Rs1.2 trillion to support households and businesses including SMEs, agriculture, and housing and construction sectors.
The central bank also took measures to support the economy including cutting the interest rate.