Bank Loans to Private Sector Skyrocket by 352% in 9 Months

Total bank loans to the private sector posted a big jump in nine months of fiscal year 2024-25 compared to 9MFY24. According to the State Bank of Pakistan (SBP), net borrowing by the private sector clocked in at Rs. 481 billion between July 2024 and March 21, 2024, compared to Rs. 106 billion reported in the same period last year, showing a big increase of 352 percent year-on-year or Rs. 374 billion from last year. Conventional banking branches received Rs. 13 billion from the private sector from July 2024 till March 21, 2025, as compared to receiving an amount of Rs. 15.4 billion in SPLY. Financing from Islamic banks increased by 338 percent YoY from Rs. 86.3 billion last year to Rs. 378 billion in 9MFY25. Islamic banking branches of conventional banks provided credit to the tune of Rs. 115.8 billion during the period in review, compared to Rs. 35.5 billion in SPLY. The government paid back Rs. 406 billion to the central bank from July 2024 till March 21, 2025, whereas it borrowed an amount of Rs. 1.309 trillion from scheduled banks on account of budgetary support.