LAHORE: Moody’s investors’ service on Monday changed its outlook forPakistan’s banking system down (B3 negative) to negative from stable.
According to the report, the banks’ operating conditions will be difficultdue to slow down in Pakistan’s real GDP growth to 4.3% in the currentfinancial year 2018-19, down from 5.8% in FY18.
Moody’s said tighter domestic monetary conditions fueled by a wide currentaccount deficit and low foreign exchange reserves will impact economicactivity.
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Since December 2017, the rupee has depreciated 30% against the greenbackand interest rates have risen by 450 basis points (bps) since January lastyear and inflation is increasing, said Moody’s.
