While relatively healthy, Pakistan’s banks are looking for ways to diversify in a bid to boost profits. These include digital branches, non-branch banking and more innovative lending, reports Edward Russell-Walling.

Pakistan’s GDP growth is up, its budget deficit is down and the China-Pakistan Economic Corridor promises to bring with it major investment. But observers are warning against government complacency as its privatisation programme stalls and power debts remain unpaid. 

As a country with severe issues of financial exclusion, Pakistan is setting up an institutional framework supporting microfinance institutions. The latest innovation is the launch of the Pakistan Microfinance Investment Company. Edward Russell-Walling maps the sector's development.

After success stories in bank privatisation, Pakistan is now turning to ailing state firms in the airline, electricity and steel sectors. But large losses, competition and social unrest are making for a bumpy ride. Edward Russell-Walling reports.

Although Pakistan's economy has not met all government targets, its macro fundamentals are strong and the China Pakistan Economic Corridor is generating a lot of optimism. Is this enough to attract more foreign direct investment into the country? Edward Russell-Walling reports.

Pakistan's big five banks have largely enjoyed a prosperous past 12 months. However, as Edward Russell-Walling discovers, lower interest rates, a lack of credit being extended to the private sector and the rise of Islamic finance are causing the banks to reassess their strategies. 

With ongoing political turmoil, foreign banks may have all but packed up and left Pakistan, but the financial sector has barely noticed. Indeed, assets and deposits have doubled between the end of 2008 and June 2014, while Islamic banking has begun to make its impact felt.