Private sector credit rises to PKR 11.38tn in FY26

Private sector credit expanded by PKR 1.46 trillion, or 14.8%, during fiscal year 2025-26, reaching PKR 11.38 trillion and recording its strongest annual growth in four years.

 

According to Adviser to the Finance Minister Khurram Schehzad, business financing accounted for more than 80% of the increase, rising by PKR 1.18 trillion, reflecting stronger borrowing for productive economic activity.

 

Nearly 89% of the increase in business credit was concentrated in three key sectors: manufacturing (56%), wholesale and retail trade (18%), and agriculture (15%). Manufacturing alone received PKR 657 billion in new financing, underscoring broad-based industrial expansion, while increased lending to trade and agriculture pointed to higher production, investment and commercial activity.

 

Schehzad said the strong growth in private sector credit signals improving business confidence, supported by macroeconomic stability, easing financial conditions and ongoing structural reforms. He added that the increasing flow of financing toward productive sectors would strengthen Pakistan’s transition to a private sector-led, investment-driven and export-oriented growth model.