Falling credit profile blamed for foreign banks’ exit

Foreign banks are gradually withdrawing from Pakistan due to the country’s declining credit profile, while local banks, having grown significantly post-privatisation, are outcompeting their foreign counterparts, according to bankers. Speaking at the two-day Future Summit 2024, which concluded on Thursday, Ahmed Khan from Citi Pakistan explained that local banks have expanded since privatisation, making it harder for foreign banks to remain competitive. Citi is now the only American bank operating in Pakistan, focusing on attracting foreign investment and supporting multinational companies, while helping Pakistani businesses expand globally, particularly in markets like Vietnam, where Citi can provide significant support.