Bank Deposits Rise 15% YoY to PKR 40.9tn in June

Pakistan's banking sector deposits increased 15.2% year-on-year to PKR 40.886 trillion as of June 2026, while rising 8.5% month-on-month, according to State Bank of Pakistan (SBP) data.

 

Analysts attributed the strong deposit growth to greater adoption of digital financial services, increased use of formal banking channels for workers' remittances, and structural reforms aimed at strengthening financial formalisation and the foreign exchange market.

 

According to AKD Securities, deposit growth outpaced both money supply and nominal GDP growth, reflecting an expanding formal economy. Most of the additional deposits were invested in government securities, supported by the SBP's tight monetary policy stance and the government's elevated financing needs.

 

Banking sector advances rose 13% YoY to PKR 15.273 trillion, while investments increased 16.4% to PKR 42.584 trillion. The advances-to-deposits ratio (ADR) declined to 37.4% from 38.1% a year earlier, indicating a relatively cautious lending environment, while the investment-to-deposit ratio (IDR) stood at 104.2%.

 

Separately, the SBP announced that, effective August 1, the minimum return requirement on most rupee savings accounts will apply only to individual depositors with monthly average balances of up to PKR 10 million. The central bank has also launched the InvestPak digital platform, enabling retail and institutional investors to invest directly in government securities. Analysts expect limited impact on overall banking deposits despite the policy change.