Published on, Aug. 19 -- August 19, 2025 1:33 PM

Fitch Ratings has projected a positive outlook for Pakistan's banking sector, citing improving macroeconomic indicators, declining inflation, and signs of economic recovery that could strengthen banks' operating conditions.

The expects Pakistan's GDP to grow by 3.5 percent in the fiscal year 2027, while inflation is forecasted to average 5 percent, marking a significant improvement from recent years of high economic stress.

Fitch noted that banks are well-positioned to benefit from easing macroeconomic pressures. Improved credit demand and overall economic recovery are expected to increase business volumes, supporting banking sector performance in the near term.

This optimistic view fol...