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Private sector gets record Rs1.138 trillion loans in FY2025-26

Pakistan’s private sector secured bank financing worth Rs1.138 trillion during the fiscal year 2025-26, marking the highest level of private-sector credit in the last four years, according to Adviser to the Finance Minister Khurram Shahzad.

In a statement, Shahzad said the sharp increase in lending reflects improving economic conditions, stronger business confidence, and the government’s efforts to encourage investment and industrial growth. He noted that private-sector credit expanded by approximately 15 percent during the fiscal year compared to the previous year.

The adviser highlighted that greater access to financing has played a key role in supporting business expansion and productive economic activities across the country. He added that around 89 percent of the newly disbursed loans were directed toward major productive sectors, including manufacturing, wholesale and retail trade, and agriculture.

According to Shahzad, the manufacturing sector alone received fresh financing of Rs657 billion, enabling industries to expand production capacity, modernize operations, and meet growing market demand. He said the significant flow of funds into manufacturing demonstrates renewed confidence in Pakistan’s industrial sector.

He further stated that increased financial support for the trade and agriculture sectors has contributed to higher production, stronger commercial activity, and improved investment by private businesses. Enhanced credit availability, he said, is helping enterprises expand operations, create employment opportunities, and strengthen overall economic performance.

Shahzad described the record lending as a positive indicator of the country’s economic recovery, saying that rising private-sector borrowing reflects improving investor sentiment and greater confidence in Pakistan’s financial system. He added that sustained access to bank financing would remain essential for maintaining economic momentum, boosting productivity, and supporting long-term, sustainable growth.

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