According to a global credit rating agency, Moody’s “Pakistan’s economic growth rate to remain at 2.5%” the credit rating agency has rated other countries as well, the overall growth rate around the world is down.
The global credit rating agency Moody’s has stated in its report that Pakistan’s economic growth rate this year is likely to be 2 to 2.5 percent. The reduction in interest rates will increase private-sector lending and improve the lender’s ability to repay their loans.
Moody’s said in its report that the cut in interest rates will affect bank’s profit margins and earnings, as well as pressure on the quality of the assets of banks, but the lending of banks to the capital conservation buffer is eliminated. Capacity will improve.
The textile sector is likely to be more affected by supply chain issues and cancellations of export orders in the wake of the Corona epidemic, the World Credit Rating Agency says, and it is also speculated that restrictions on transportation will also affect the services sector in Pakistan. It is to be noted that Moody’s had earlier predicted Pakistan’s economic growth rate to be 2.9% due to the economic impact of the Coronavirus. However, the new report claims the worse outcomes as Coronavirus implications have tightened the grip globally.