Published on, Aug. 18 -- August 18, 2025 6:43 PM

Fitch Ratings expects Pakistan's real GDP growth to accelerate from 2.5% in 2024 to 3.5% by 2027. The noted the recovery follows a period of high inflation and economic turmoil. Inflation eased significantly, with CPI dropping to 4.1% in July 2025 from a peak of 38% in 2023. Fitch forecasts inflation will average around 5% for 2025, supporting a more stable economic outlook.

Meanwhile, Pakistan's banking sector is poised for growth due to improving economic conditions and lower interest rates. Fitch highlighted the halving of the policy rate to 11% since May 2024, which, along with better external stability, has reduced currency volatility and led to current account surpluses. These facto...