Private Sector Lending Hits Record Rs1.5T in FY26

KARACHI: Pakistan’s private sector has stormed to a record Rs1.5 trillion in bank lending during FY26, fueled by the government’s retreat from bank borrowing, the Pakistan Banks Association (PBA) announced. This lending explosion triggered an 8.33% surge in Large-Scale Manufacturing (LSM), proving the private sector’s muscle in industrial revival and job creation. PBA Chairperson Zafar Masud hailed the pivot: “Less government borrowing = instant capital flood into business, industry, and agriculture.” SBP data: Rs187 billion fresh credit Jul–Nov FY26 on easing rates and better sentiment — though YoY -0.3% on high base. Jul 2024–Dec 12 2025: Rs135.3B vs Rs1.47T last year. FY25 total: Rs1.08T. Government repaid Rs166B — flip from Rs1.662T last year. Deposits hit Rs35.1T. PBA CEO Muneer Kamal: Risk-sharing and market tools key to sustainable lending. SMEs: borrowers +56.9% to 276,578, financing +40.7% to Rs691B. Agriculture: farmers +7.3% to 2.9M, disbursements +16.3% to Rs2.57T record.