Islamabad, Jan 7: Total bank loans to the private sector reached Rs. 10.77 trillion in the 2024-25 financial year, up from Rs. 8.86 trillion at the end of FY24. According to the State Bank of Pakistan (SBP), net borrowing by the private sector amounted to Rs. 1.9 trillion between July 2024 and December 27, 2024, marking a significant increase of 265.5% year-on-year, or Rs. 1,385 billion, compared to Rs. 521.7 billion in the same period last year.
Conventional banking branches lent Rs. 1,112 billion to the private sector during the same period, a sharp rise from Rs. 230 billion lent in the previous year. On the other hand, financing from Islamic banks decreased by 67% year-on-year, falling from Rs. 733 billion to Rs. 233 billion. Islamic banking branches of conventional banks provided Rs. 55.5 billion in credit, slightly down from Rs. 61.5 billion in the same period last year.
Additionally, the government repaid Rs. 713 billion to the central bank between July 2024 and December 27, 2024, while borrowing Rs. 7.48 trillion from scheduled banks for budgetary support.
