{"id":23296,"date":"2025-08-19T09:42:43","date_gmt":"2025-08-19T09:42:43","guid":{"rendered":"https:\/\/gsrra.com\/?p=23296"},"modified":"2025-08-19T09:42:46","modified_gmt":"2025-08-19T09:42:46","slug":"pakistans-gdp-growth-to-reach-3-5-by-2027-fitch","status":"publish","type":"post","link":"https:\/\/gsrra.com\/?p=23296","title":{"rendered":"Pakistan&#8217;s GDP growth to reach 3.5% by 2027: Fitch"},"content":{"rendered":"\n<p><strong><em>Global credit rating agency says Pakistan banks poised to benefit from improving operating conditions<\/em><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.geo.tv\/assets\/uploads\/updates\/2025-08-18\/619353_7208317_updates.jpg\" alt=\"The Fitch Ratings logo is seen at their offices at Canary Wharf financial district in London. \u2014 Reuters\"\/><figcaption class=\"wp-element-caption\">The Fitch Ratings logo is seen at their offices at Canary Wharf financial district in London. \u2014 Reuters<\/figcaption><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Pakistani banks see stronger growth opportunities ahead: Fitch.<\/strong><\/li>\n\n\n\n<li><strong>Global rating agency cites improving overall business conditions.<\/strong><\/li>\n\n\n\n<li><strong>Says Pakistan\u2019s recovery follows tough period of crisis.<\/strong><\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p>Global credit rating agency Fitch has forecasted Pakistan&#8217;s real GDP growth at 3.5% by 2027, up from 2.5% in 2024, according to Fitch Ratings.<\/p>\n\n\n\n<p>\u201cPakistan\u2019s improved sovereign credit profile reinforces this view,\u201d Fitch noted, referring to the upgrade of the country\u2019s Long-Term Issuer Default Rating (IDR) to &#8216;B-&#8216;\/Stable from \u2018CCC+\u2019 in April 2025. The rating improvement was underpinned by ongoing economic recovery, reforms and improving fiscal performance.<\/p>\n\n\n\n<p>The recovery comes after a particularly turbulent period for Pakistan\u2019s economy. Inflation, which peaked at 38% in May 2023, has since eased to 4.1% in July 2025, with Fitch expecting it to average around 5% for the year.<\/p>\n\n\n\n<p>Meanwhile, monetary policy has shifted in response to easing inflationary pressures. Since May 2024, Pakistan&#8217;s central bank has halved the policy rate to 11%, while external stability has improved through reduced currency volatility and current account surpluses.<\/p>\n\n\n\n<p>Fitch anticipates that this combination of lower interest rates and a more stable macroeconomic environment will boost demand for private credit.<\/p>\n\n\n\n<p>\u201cWe expect the combination of lower interest rates and an improving macroeconomic environment to stimulate private credit demand,\u201d Fitch said, adding that this should support \u201csteadier loan and deposit growth, and banks\u2019 financial performance.\u201d<\/p>\n\n\n\n<p>The agency noted that Pakistan\u2019s banks are set to benefit from better opportunities to generate business volumes due to improving operating conditions amid receding macroeconomic headwinds.<\/p>\n\n\n\n<p>\u201cPrivate sector credit, which had dropped to a cyclical low of 9.7% of GDP in 2024, is expected to rebound, reducing banks\u2019 reliance on public-sector lending. Continued economic and fiscal reforms could further support this shift,\u201d the statement read.<\/p>\n\n\n\n<p>However, Fitch also pointed to ongoing risks, stating that Pakistan\u2019s improving, albeit still weak, operating environment and its low sovereign credit rating remain areas of concern.<\/p>\n\n\n\n<p>The agency cautioned that the banks\u2019 intrinsic creditworthiness will remain \u201cclosely linked to the sovereign and the pace of economic reform,\u201d due to their significant exposure to sovereign securities and state-linked entities.<\/p>\n\n\n\n<p>Despite past economic turbulence, Pakistani banks have demonstrated resilience. The sector\u2019s impaired loan ratio improved to 7.1% by March 2025, down from 7.6% at the end of 2023, amid strong loan growth of 26%, largely fueled by inflation.&nbsp;<\/p>\n\n\n\n<p>Reference Link:- <a href=\"https:\/\/www.geo.tv\/latest\/619353-pakistans-gdp-growth-to-reach-35-by-2027-fitch\" target=\"_blank\" rel=\"noopener\">https:\/\/www.geo.tv\/latest\/619353-pakistans-gdp-growth-to-reach-35-by-2027-fitch<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global credit rating agency says Pakistan banks poised to benefit from improving operating conditions Global credit rating agency Fitch has forecasted Pakistan&#8217;s real GDP growth at 3.5% by 2027, up from 2.5% in 2024, according to Fitch Ratings. \u201cPakistan\u2019s improved sovereign credit profile reinforces this view,\u201d Fitch noted, referring to the upgrade of the country\u2019s [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":23297,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[2],"tags":[132,5035,22914,36,22911,22915,22912,60],"class_list":["post-23296","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sample-category","tag-economy","tag-gdp","tag-global-credit-rating","tag-pakistan","tag-pakistans-gdp-growth-3-5","tag-pakistans-gdp-growth-to-reach-3-5-by-2027-fitch","tag-fitch-projection","tag-geopolitics"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/23296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23296"}],"version-history":[{"count":1,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/23296\/revisions"}],"predecessor-version":[{"id":23298,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/23296\/revisions\/23298"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/media\/23297"}],"wp:attachment":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}