The recent reports from various news outlets highlight a significant development in Pakistan's banking sector, as Moody's has revised the country's banking system outlook from positive to stable. According to Hum News, Moody's stated that the banking sector is on a path of improvement, with expectations of stable performance over the next 12 to 18 months. However, the credit profile of banks remains under pressure, and the real GDP growth for 2026 is projected at 3.5%. Express News elaborates that while the economic environment is gradually improving, high-interest rates and credit risks continue to pose challenges, and external financing and inflation concerns persist. Despite these challenges, the sentiment across sources remains positive, reflecting cautious optimism about the sector's future stability.