Pakistan’s private sector borrowing recorded its strongest growth in four years during the fiscal year 2025–26, signaling renewed business confidence and improving economic activity, according to Adviser to the Finance Minister Khurram Shahzad.
Shahzad said private sector credit expanded by nearly 15 percent over the fiscal year, with total lending reaching Rs1.138 trillion. He described the increase as a positive indicator of strengthening economic momentum, driven by greater financial support for businesses and productive sectors.
According to the adviser, around 89 percent of the new loans were directed toward key segments of the economy, including manufacturing, wholesale and retail trade, and agriculture. These sectors have played a central role in boosting production, expanding commercial activity, and encouraging private investment.
The manufacturing sector emerged as the largest beneficiary, receiving Rs657 billion in fresh financing. Shahzad noted that the substantial flow of credit reflects increased industrial expansion, higher production capacity, and growing confidence among manufacturers.
He added that improved access to financing for the trade and agriculture sectors has further strengthened business operations and supported economic growth across the country.
Shahzad emphasized that the surge in private sector lending demonstrates rising investor confidence and reflects Pakistan’s continued progress toward greater economic stability, stronger industrial performance, and a more resilient business environment.
