Private sector credit in Pakistan increased by Rs1.46 trillion, or 14.8%, during fiscal year 2025-26, reaching Rs11.38 trillion, marking the strongest annual growth in four years.
According to data, the increase represents the highest expansion in private sector lending since FY22, reflecting stronger business activity and improved financing conditions.
Business credit remained the main driver of growth, rising by Rs1.18 trillion, or 14%, during the year. It contributed more than 80% of the total increase in private sector credit, showing increased financing for productive economic activities.
Nearly 89% of the growth in business credit was concentrated in three major sectors: manufacturing, wholesale and retail trade, and agriculture.
Manufacturing received the largest share, accounting for 56% of the increase, followed by wholesale and retail trade with 18% and agriculture with 15%.
ย
๐ฃ๐ฟ๐ถ๐๐ฎ๐๐ฒ ๐ฆ๐ฒ๐ฐ๐๐ผ๐ฟ ๐๐ฟ๐ฒ๐ฑ๐ถ๐ ๐๐ฟ๐ผ๐๐ ๐ก๐ฒ๐ฎ๐ฟ๐น๐ ๐ญ๐ฑ% ๐ถ๐ป ๐๐ฌ๐ฎ๐ฒ โ ๐ฆ๐๐ฟ๐ผ๐ป๐ด๐ฒ๐๐ ๐๐ ๐ฝ๐ฎ๐ป๐๐ถ๐ผ๐ป ๐ถ๐ป ๐ฐ ๐ฌ๐ฒ๐ฎ๐ฟ๐
๐๐ช๐จ๐ฉ๐ฆ๐ด๐ต ๐จ๐ณ๐ฐ๐ธ๐ต๐ฉ ๐ด๐ช๐ฏ๐ค๐ฆ ๐๐ ๐ค๐ค
๐๐ฒ๐ ๐๐ถ๐ด๐ต๐น๐ถ๐ด๐ต๐๐
โช๏ธ Private sector credit expanded by Rs 1.46 trillionโฆ pic.twitter.com/lyNfPOMQCv
โ Khurram Schehzad (@kschehzad) August 2, 2026
The manufacturing sector alone secured Rs657 billion in new credit, indicating wider industrial expansion. Meanwhile, increased financing for trade and agriculture reflected stronger production, business activity and investment across the economy.
Experts said private sector credit is an important indicator of economic growth because businesses use financing to expand operations, increase production capacity, modernize systems and prepare for future demand.
The broad-based rise in credit across key productive sectors suggests improving business confidence, higher private investment and the positive impact of economic stability, easier financial conditions and ongoing reforms.
The latest figures also highlight that the quality of credit growth is as important as its overall size. Increased financing toward productive sectors could help improve competitiveness, expand capacity and support Pakistanโs shift toward a private sector-led, investment-focused and export-oriented economic growth model.
