Wednesday, August 20 2025

Banks set to gain from stability, says Fitch
Fitch Ratings on Monday projected improved prospects for Pakistan’s banking sector, citing stabilising macroeconomic indicators, falling inflation, and a return to economic growth. The global credit agency expects Pakistan’s GDP to grow by 3.5pc in FY27, with inflation averaging 5pc — a significant shift from the turmoil and high inflation of recent years. In a brief commentary, Fitch said banks are well-positioned to capitalise on improving operating conditions as macroeconomic headwinds ease. It noted that stronger business volumes, driven by economic recovery and better credit demand, would support banking performance in the near term. The outlook follows Pakistan’s upgraded sovereign credit profile, with Fitch raising its Long-Term Issuer Default Rating (IDR) to ‘B-’/Stable from ‘CCC+’ in April 2025. The upgrade reflects ongoing reforms, fiscal improvement, and greater economic resilience.
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