ISLAMABAD: The international credit rating agency Moody’s has improved its rating for Pakistan’s banking sector as stable.

According to an official report quoting Moody’ Investors Service report said that the government’s credit profile is stable due to ongoing reforms and increasing policy effectiveness.

It said stable outlook for Pakistan’s banking system reflects banks’ solid funding and liquidity. The report said deposit-based funding and good liquidity buffers also remain strengths, while the probability of government support in a crisis is high.