Pakistan's private sector credit expanded by Rs1.46 trillion, or 14.8%, during FY2025-26, reaching Rs11.38 trillion and recording its strongest annual increase in four years, according to Adviser to the Finance Minister Khurram Schehzad.

In a statement shared on X, Schehzad said business credit increased by Rs1.18 trillion, accounting for more than 80% of the overall growth in private sector lending. The increase reflects stronger financing for productive economic activities as business confidence continues to improve.

He noted that nearly 89% of the expansion in business credit was concentrated in three key sectors. Manufacturing accounted for 56% of the increase, followed by wholesale and retail trade at 18%, and agriculture at 15%. Manufacturing alone received Rs657 billion in new financing, highlighting broad-based industrial expansion.

Schehzad said the strong growth in credit to trade and agriculture indicates rising production, commercial activity and private investment across the economy. He described private sector credit as a key leading indicator of economic growth, reflecting businesses' willingness to invest, expand capacity and modernize operations.

He added that the improving composition of credit supports Pakistan's transition toward a private sector-led, investment-driven and export-oriented economy, underpinned by macroeconomic stability, easing financial conditions and ongoing structural reforms.