SBP Data Reveals Conventional Banking Credit Retreat as Islamic Finance Surges
State Bank of Pakistan reports a net retirement of Rs32.8 billion in private sector credit by conventional banks, while Shariah-compliant lending sees a massive spike.
Pakistan Monetary Policy 2026 Interest Rates Held at 10.5 Percent Amid Rising Private Sector Credit
Pakistan Monetary Policy Committee maintains interest rates at 10.5 percent as private sector borrowing surges to Rs 928 billion and M2 money supply grows by 3.5 percent.
Pakistan Banks Association Warns High Taxation on Banks Risks Slowing Digital and Credit Growth
Pakistan Banks Association says banking sector has become the largest contributor to government revenue due to elevated taxes, warning that high corporate taxation is constraining growth, investment, and financial inclusion.
Private Sector Credit Drops 57% to Rs589 Billion in FY26, SBP Eases Liquidity
Private sector credit in Pakistan fell 57% year-on-year to Rs588.68 billion in FY26, while SBP’s CRR cut and reduced export refinance rate aim to boost industrial lending in coming months.
Pakistan Banking Sector ADR Improves to 39.8% in December 2025 on Strong Deposit Growth
Pakistan’s banking sector saw its advance-to-deposit ratio rebound to 39.8% in December 2025 as deposits grew 23.6% year-on-year, while banks continued to favour investments over lending.
SBP Reduces CRR to 5% to Support Credit Expansion in Pakistan
State Bank of Pakistan lowers average Cash Reserve Requirement to 5% effective January 30, 2026, aiming to improve liquidity and encourage private sector credit growth.
Seven Pakistani Banks Enter Asia-Pacific Top 15 as PBA Cites Strong Returns and Credit Growth
Pakistan Banks’ Association congratulates seven local banks ranked among Asia-Pacific’s top 15 in 2025, highlighting strong shareholder returns, SME growth, and rising private sector credit.
Pakistan Banking Sector Advance-to-Deposit Ratio Hits 38% as Private Lending Surges
Pakistan’s banking sector ADR rose to 38% by November 2025, supported by Rs1.5 trillion in private sector credit. PBA cites fiscal borrowing and high cash economy as key constraints on further lending growth.
Private sector retires Rs297bn debt in Q1 FY26 as uncertainty stalls fresh borrowing
Pakistan’s private sector retired Rs297 billion in debt during the first quarter of FY26, with no fresh borrowing recorded as businesses held back amid economic and political uncertainty.
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.