Private sector shifts to net borrowing as bank lending reaches Rs87 billion

Private-sector borrowers drew a net Rs87 billion from banks between July 1 and October 23, 2026, reversing last year’s Rs29 billion repayment, Profit by Pakistan Today reported, citing State Bank of Pakistan data. The improvement comes as the government presses lenders to finance farmers, small businesses and applicants for the Apna Ghar housing programme, with the prime minister directing the Finance Ministry to address delayed disbursements.

The increase was concentrated in Islamic windows operated by conventional lenders; conventional banks and standalone Islamic banks still recorded net repayments of Rs320 million and Rs63 billion, respectively. Lending remains constrained by expensive financing, political and security risks, and uncertainty over regional conflict. The SBP raised its policy rate by 50 basis points to 12% last week, while inflation remained in double digits over the first four fiscal-year months and analysts expect additional tightening.