Pakistan’s non bank financial sector recorded strong expansion in the first half of FY26, with total assets rising 21 percent to Rs6.84 trillion by December 2025, compared to Rs5.63 trillion in June 2025, according to data released by the Securities and Exchange Commission of Pakistan (SECP). The figures signal accelerating momentum in alternative financial channels beyond the conventional banking system.
Mutual funds remained the dominant segment within the non bank financial landscape, accounting for Rs4.5 trillion in assets. The number of funds increased to 409 by December 2025, up from 369 six months earlier, reflecting a notable rise in product offerings and investor engagement. The expansion in fund count points to diversification strategies by asset management companies and growing appetite among retail and institutional participants.
Investor participation also strengthened during the period. Mutual fund investor accounts climbed to approximately 845,000, marking an 8 percent increase since June 2025. The rise in account numbers indicates broader financial inclusion and increased awareness of managed investment products as savings and wealth management tools.
In terms of asset allocation, money market funds attracted the largest share of investments at 44 percent, underscoring investor preference for lower risk and short duration instruments amid prevailing market uncertainty. Income funds followed with a 23 percent share, while equity funds accounted for 14 percent of total investments. The allocation pattern reflects a cautious investment environment, with participants favoring capital preservation and stable returns over higher volatility equity exposure.
Voluntary pension schemes also witnessed notable growth. The number of contributors surpassed 143,000, representing a 30 percent increase over the six month period. The uptick suggests expanding interest in long term retirement planning and structured savings vehicles, supported by regulatory oversight and improved awareness of pension products.
Lending non bank finance companies (NBFCs) registered robust asset growth as well. Assets in this segment reached Rs824 billion, posting a 65 percent increase, which highlights expanding credit activity outside the traditional banking channel. The surge indicates rising demand for alternative financing solutions, particularly among segments that may not be fully served by commercial banks.
Shariah compliant assets formed a substantial portion of the sector’s base, standing at Rs2.47 trillion and representing 36 percent of total non bank financial assets. The size of the Islamic finance component reflects sustained demand for Shariah aligned investment and financing structures, further diversifying the sector’s composition.
Institutional expansion was also evident in the increase in registered entities. The number of NBFCs and Modaraba companies rose to 185 by December 2025, compared to 174 in June 2025. This growth indicates continued formalisation and regulatory registration within the sector, strengthening governance and transparency standards.
Overall, the data reflects steady and broad based growth in Pakistan’s non bank financial industry during the first half of FY26. Increased investor participation, product diversification, expansion in Shariah compliant offerings and rising credit activity through NBFCs collectively signal a deepening financial ecosystem. As alternative financing channels continue to scale, the sector is playing an increasingly significant role in capital formation, savings mobilisation and financial intermediation across the economy.
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