Rethinking the Criticism: Why Banks Prefer Government Lending Amid Pakistan’s Economic Realities
Furqan Ali critiques the widespread perception of opportunism in Pakistan’s banking sector, arguing that reliance on government lending is a calculated response to deeper structural flaws. He urges for major public finance and economic reforms to enable a more balanced credit environment.
Pakistan’s banking sector ADR drops to 38 percent as cautious lending continues
Pakistan’s banking sector advance-to-deposit ratio fell to 38 percent in June 2025, reflecting continued cautious lending to private businesses, even as deposits grew and banks remained heavily invested in government debt instruments.
State Bank Keeps Policy Rate Steady at 11% as Growth Strengthens and Inflation Stabilizes
The State Bank of Pakistan has maintained its policy rate at 11% in the latest monetary policy decision, signaling confidence in economic recovery and inflation outlook. Despite rising trade deficits and external risks, the central bank projects continued economic growth into FY26, underpinned by private sector momentum and fiscal reforms.