Pakistan, March 13 -- In a major development on the banking front, global rating Moody's has improved Pakistan's banking outlook from stable to positive.
"We have changed our outlook on Pakistan's banking system to positive from stable to reflect the banks' resilient financial performance as well as improving macroeconomic conditions from very weak levels a year ago," read the statement.
"The positive outlook on the sector also mirrors the Government of Pakistan's (Caa2 positive) positive outlook, with Pakistani banks having significant exposure to the sovereign through their large holdings of government securities, which account for around half of total banking assets.
"However, Pakistan's long-term debt sustainability remains a key ris...