Lahore: The rating agency Moody’s on Monday stated that while the ongoing COVID-19 restrictions are seen to keep economic activity to pre-pandemic levels, the economy will experience modest growth of 1.5%, a news source reported. Moreover, the agency maintained stable outlook for the country’s banking sector on the back of reforms and policy effectiveness.
Read: Construction industry relief package to buffer Pakistan’s economy against major blows: Moody’s
The report, titled ‘Banking System Outlook – Pakistan: Stable outlook balances loan book and profitability pressure against stable funding and a resilient sovereign’ covered the agency’s views on Pakistan’s banking sector.
The report added that Pakistan’s banking system reflected banks’ solid funding and liquidity, although a challenging operating environment would weigh on asset quality and profitability.
Read: Pakistan’s banking sector outlook stable: Moody’s
The report further said that the State Bank of Pakistan (SBP)’s policy to implement buffer against the impact of coronavirus pandemic will partially work and as a result the public sector lending will see a modest growth of about 5% to 7% during the going year.