Fitch raises Pakistan's ranking after IMF deal
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Fitch Predicts Pakistan’s GDP Growth to Reach 3.5% by 2027

By Faiz Paracha

ISLAMABAD: Pakistan’s real economic growth is expected to reach 3.5% by 2027, according to a recent forecast by Fitch Ratings.

The report highlighted that Pakistani banks can benefit from opportunities to expand their business volumes, noting that a significant portion of bank investments is currently in government securities.

Fitch further stated that economic pressures have eased, business conditions have improved, and Pakistan’s debt outlook has strengthened. Banks have also extended substantial loans to state institutions.

Non-performing loans (NPLs) have declined from 7.6% to 7.1%, reflecting a gradual economic recovery after a challenging period marked by high inflation. The report also predicted that demand for private-sector credit is likely to increase.

Fitch emphasized that continued structural reforms, improved fiscal management, and supportive monetary policies will be crucial for sustaining growth and attracting further investment into Pakistan’s economy.

Faiz Paracha

Faiz Paracha, an esteemed broadcast journalist with over two decades of experience, excels in reporting and editorial positions. His expertise lies in the economy and energy sectors, where he has delivered thorough coverage and valuable insights.

Currently serving as the Head of Reporting at News Diplomacy, Faiz manages coverage related to diplomatic missions, international development organizations, the United Nations, and foreign affairs. His diverse interests encompass environmental and climatic issues, alongside his profound knowledge of business, economy, and energy.

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