Private sector lending in Pakistan experiences a significant increase, according to data from the SBP.

– Financial activity in the private sector of Pakistan has significantly increased, as reported by the State Bank of Pakistan (SBP) on Thursday. The research underscores substantial expansion in automotive financing, credit cards, personal loans, and mortgage financing.

Auto loans experienced a significant increase of 35.5% over the past year, escalating from PKR 235 billion to PKR 318 billion. Private sector loans increased by 1.6% during the month, totaling PKR 9,856 billion, and new business loans rose by 1.5%, reaching PKR 8,498 billion.

Personal loans increased by 10.3%, jumping from PKR 1,222 billion to PKR 1,348 billion, indicating a surge in family borrowing. Housing finance rose by 7% to PKR 214 billion, while credit card debt escalated by 30.6%, totaling PKR 177 billion.

Officials from the SBP observed that the expansion in private sector lending indicates heightened confidence among firms and consumers, with improved access to credit facilitating households and enterprises in preparing for economic engagement.