Private sector credit in Pakistan increased by Rs1.46 trillion, or 14.8%, during fiscal year 2025-26, reaching Rs11.38 trillion, marking the strongest annual growth in four years.
According to data, the increase represents the highest expansion in private sector lending since FY22, reflecting stronger business activity and improved financing conditions.
Business credit remained the main driver of growth, rising by Rs1.18 trillion, or 14%, during the year. It contributed more than 80% of the total increase in private sector credit, showing increased financing for productive economic activities.
Nearly 89% of the growth in business credit was concentrated in three major sectors: manufacturing, wholesale and retail trade, and agriculture.
Manufacturing received the largest share, accounting for 56% of the increase, followed by wholesale and retail trade with 18% and agriculture with 15%.
𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗦𝗲𝗰𝘁𝗼𝗿 𝗖𝗿𝗲𝗱𝗶𝘁 𝗚𝗿𝗼𝘄𝘀 𝗡𝗲𝗮𝗿𝗹𝘆 𝟭𝟱% 𝗶𝗻 𝗙𝗬𝟮𝟲 — 𝗦𝘁𝗿𝗼𝗻𝗴𝗲𝘀𝘁 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻 𝗶𝗻 𝟰 𝗬𝗲𝗮𝗿𝘀
𝘏𝘪𝘨𝘩𝘦𝘴𝘵 𝘨𝘳𝘰𝘸𝘵𝘩 𝘴𝘪𝘯𝘤𝘦 𝘍𝘠𝟤𝟤
𝗞𝗲𝘆 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀
▪︎ Private sector credit expanded by Rs 1.46 trillion… pic.twitter.com/lyNfPOMQCv
— Khurram Schehzad (@kschehzad) August 2, 2026
The manufacturing sector alone secured Rs657 billion in new credit, indicating wider industrial expansion. Meanwhile, increased financing for trade and agriculture reflected stronger production, business activity and investment across the economy.
Experts said private sector credit is an important indicator of economic growth because businesses use financing to expand operations, increase production capacity, modernize systems and prepare for future demand.
The broad-based rise in credit across key productive sectors suggests improving business confidence, higher private investment and the positive impact of economic stability, easier financial conditions and ongoing reforms.
The latest figures also highlight that the quality of credit growth is as important as its overall size. Increased financing toward productive sectors could help improve competitiveness, expand capacity and support Pakistan’s shift toward a private sector-led, investment-focused and export-oriented economic growth model.
