Bank Loans to Private Sector Skyrocket By Over 265%

Total bank loans to the private sector clocked in at Rs. 10.77 trillion in the current financial year 2024-25 from Rs. 8.86 trillion by the end of FY24. According to the State Bank of Pakistan (SBP), net borrowing by the private sector clocked in at Rs. 1.9 trillion between July 2024 and December 27, 2024, compared to just Rs. 521.7 billion reported in the same period last year, showing an increase of 265.5 percent year-on-year or Rs. 1,385 billion from last year. Conventional banking branches lent Rs. 1,112 billion to the private sector from July 2024 till December 27, 2024, as compared to lending an aggregate amount of Rs. 230 billion in SPLY. Financing from Islamic banks declined by 67 percent YoY from Rs. 733 billion last year to Rs. 233 billion this year. Islamic banking branches of conventional banks provided credit to the tune of Rs. 55.5 billion during the period in review compared to Rs. 61.5 billion in SPLY. The government paid back Rs. 713 billion to the central bank from July 2024 till December 27, 2024, whereas it borrowed an amount of Rs. 7.48 trillion from scheduled banks on account of budgetary support.