The private sector’s borrowing from banks witnessed a remarkable surge during the first nine months of fiscal year 2024-25, showing significant growth compared to the previous year. According to the State Bank of Pakistan (SBP), net borrowing reached Rs. 481 billion between July 2024 and March 21, 2025, marking a 352% year-on-year (YoY) increase from Rs. 106 billion during the same period last year.
Conventional banking branches received Rs. 13 billion in loans from the private sector during this timeframe, compared to Rs. 15.4 billion in the corresponding period of the previous year. Meanwhile, financing from Islamic banks experienced substantial growth, rising by 338% YoY from Rs. 86.3 billion to Rs. 378 billion. Islamic banking branches affiliated with conventional banks also saw a notable increase, with credit provision growing from Rs. 35.5 billion last year to Rs. 115.8 billion this year.
On the government side, repayments to the central bank amounted to Rs. 406 billion from July 2024 to March 21, 2025. However, the government borrowed Rs. 1.309 trillion from scheduled banks to support budgetary requirements, underscoring the dynamic shifts in the financial landscape of Pakistan