Pakistan’s banking sector deposits recorded a strong annual increase in July 2026, reaching Rs40.83 trillion, according to data from the State Bank of Pakistan (SBP) compiled by Arif Habib Limited (AHL) Research. The deposit base increased 19.1% year-on-year (YoY) from Rs34.28 trillion recorded in July 2025, reflecting a significant rise in funds held within the banking system. Despite the substantial annual growth, deposits remained broadly stable on a monthly basis, declining marginally by 0.1% from Rs40.89 trillion in June 2026.
The increase in deposits came alongside growth in banking sector advances, although lending activity showed a decline compared with the previous month. Advances reached Rs14.46 trillion in July 2026, representing a 9% YoY increase from Rs13.27 trillion in July 2025. However, advances declined 5.3% month-on-month (MoM) from Rs15.27 trillion in June 2026. The annual rise indicates that the banking sector continued to maintain a higher level of lending compared with the same period last year, while the monthly decline points to a reduction in advances during July.
Banking sector investments also remained significantly higher on an annual basis, reaching Rs39.05 trillion in July 2026 compared with Rs36.19 trillion in July 2025. This represents a 7.9% YoY increase in investments. However, investments declined 8.3% MoM from Rs42.58 trillion recorded in June 2026. The monthly movement indicates that while the overall investment position remained above the level recorded a year earlier, it experienced a notable reduction compared with the previous month.
The advance-to-deposit ratio (ADR), which indicates the proportion of deposits being deployed as advances, stood at 35.4% in July 2026. This was lower than the 38.7% recorded in July 2025 and 37.4% in June 2026. The ADR declined by 329 basis points YoY and 193 basis points MoM. The movement in the ratio reflects the faster growth in deposits compared with advances during the period, leaving a smaller proportion of the banking sector’s deposit base represented by advances.
Meanwhile, the investment-to-deposit ratio (IDR) declined to 95.6% in July 2026, compared with 105.6% in July 2025 and 104.2% in June 2026. The ratio decreased by 993 basis points YoY and 850 basis points MoM. The decline followed the reduction in investments during July, combined with the comparatively strong deposit base. Despite the monthly decline, investments remained substantially higher than advances in absolute terms during the month.
Overall, the July figures show continued expansion in Pakistan’s banking deposits on an annual basis, with deposits growing considerably faster than both advances and investments. Deposits increased 19.1% YoY, while advances rose 9% and investments grew 7.9% over the same period. At the same time, both the ADR and IDR recorded declines compared with July 2025 and June 2026. The data compiled by AHL Research from SBP figures provides an overview of the changing composition of bank deposits, lending and investment positions during July 2026.
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