Pakistan banking system outlook changed from stable to negative. Moody’s Investors Service released the statement on Monday. “Over the next 12-18 months, banks in Pakistan will see their credit profiles challenged by their high exposure to the country’s low-rated sovereign debt and a slowing economy,” says Constantinos Kypreos, a Moody’s senior vice president
The banks’ operating conditions will be difficult, with Pakistan’s GDP growth slowing to 4.3% in fiscal year ending June 2019 from 5.8% in 2018. A slowing economy and high exposure to sovereign debt drive our negative outlook. Moody’s outlook for Pakistan’s banking system is negative. The outlook expresses our expectation of how bank creditworthiness will evolve in this system over the next 12 to 18 months.