KARACHI: Global rating agency Moody’s has upgraded Pakistan’s banking outlook to positive from stable on the back of improved financial performance.

“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,” said the statement issued by the rating agency.

Financial sector experts say the banks have generated substantial profits over the past couple of years despite a lack of engagement in using their money for economic growth. Lending to the private sector has been dismal. However, the government’s aggressive borrowings at an unprecedented 22 per cent and even........

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