Private sector credit rises PKR 934bn

Credit to Pakistan’s private sector rose by Rs934.1 billion during July-March FY2026, up from Rs767.6 billion in the same period last year.

Credit to Pakistan’s private sector rose by Rs934.1 billion during July-March FY2026, up from Rs767.6 billion in the same period last year, as lower borrowing costs and improving economic conditions encouraged businesses to seek financing, according to the Economic Survey 2025-26.

Private-sector credit grew 12 per cent year-on-year (YoY), with loans to businesses reaching Rs810.7 billion, accounting for nearly 80 per cent of total private-sector borrowing. The survey attributed the increase to monetary easing, which lowered lending rates and improved access to finance.

Demand for long-term investment financing rose sharply to Rs387.7 billion from Rs259.2 billion a year earlier, reflecting increased spending on capacity expansion and modernisation, particularly in manufacturing sectors such as chemicals, cement and non-metallic minerals. Investment borrowing also increased in wholesale trade, transport, construction and professional services.

In contrast, working capital loans fell to Rs492.8 billion from Rs646.6 billion. The manufacturing sector remained the largest user of short-term financing, while textile-sector borrowing dropped to Rs33.2 billion from Rs257.5 billion, which the survey linked to lower input costs and reduced financing needs.

Source: The International News Pakistan