International rating agency Moody’s has upgraded the outlook for Pakistani banks from stable to positive, citing improvements in the country's economic conditions and financial resilience over the past year.

In its latest statement issued on Wednesday, Moody’s acknowledged the strong performance of Pakistani banks, highlighting their record-breaking profits in 2024 and a more stable operating environment. The agency also noted that the macroeconomic situation and financial flexibility of banks have improved compared to the previous year.

Moody’s decision to revise the outlook reflects growing confidence in Pakistan’s economic trajectory. The rating agency projected that Pakistan’s economic growth will reach 3% in 2025, up from 2.5% in 2024, signaling steady progress in economic recovery.

Also Read: IMF rejects tax exemption on foreign investment projects in Pakistan

On the other hand, ongoing economic review talks between Pakistan and the International Monetary Fund (IMF) have reached a critical phase, with the IMF rejecting Pakistan’s request for a tax exemption on international investment projects, sources revealed on Wednesday.

During the discussions, officials from the Special Investment Facilitation Council (SIFC) briefed the IMF delegation on investment and governance matters. The delegation was informed that SIFC is playing a crucial role in bridging the gap between investors and the government to facilitate foreign direct investment.

However, the IMF declined Pakistan’s request for a tax exemption on the proposed railway track project from Chagai to Gwadar, which is essential for transporting minerals extracted from the Reko Diq copper and gold reserves.