Pakistan’s private sector lending recorded its strongest growth in four years during FY2025–26, highlighting renewed business confidence and improving economic activity, according to Adviser to the Finance Minister Khurram Shahzad.
Khurram Shahzad said private sector credit expanded by nearly 15 percent during the fiscal year, with total lending reaching Rs1.138 trillion. He described the increase as a strong sign of economic recovery, driven by higher financing for businesses and productive sectors.
According to the adviser, approximately 89 percent of the new loans were directed toward key sectors of the economy, including manufacturing, wholesale and retail trade, and agriculture. These industries have played a major role in boosting production, increasing commercial activity, and encouraging private investment across Pakistan.
The manufacturing sector received the largest share of financing, securing Rs657 billion in fresh credit. Shahzad said the significant increase in lending reflects rising industrial expansion, improved production capacity, and growing confidence among manufacturers.
He added that easier access to credit for the trade and agriculture sectors has strengthened business operations, supported supply chains, and contributed to overall economic growth.
The adviser emphasized that the sharp rise in private sector borrowing demonstrates increasing investor confidence in Pakistan’s economy. He noted that stronger financial support for businesses is helping create a more resilient economic environment while encouraging industrial development and sustainable growth.
Economic analysts view higher private sector lending as an important indicator of improving business sentiment, increased investment, and expanding economic activity. The latest figures suggest that Pakistan’s financial sector is playing a greater role in supporting productive industries and strengthening the country’s long-term economic outlook.
