Pakistan's private sector credit rose to Rs11.38 trillion at the end of June 2026, marking a 14.8% year-on-year increase, according to State Bank of Pakistan (SBP) data, reflecting stronger business activity and improving bank lending.

Outstanding private sector credit increased from Rs9.92 trillion in June 2025 to Rs11.38 trillion, continuing the recovery after lending rebounded sharply over the past two fiscal years. Analysts attributed the growth to the SBP's monetary easing cycle, which lowered borrowing costs and encouraged banks to expand lending to businesses.

The manufacturing sector recorded the largest increase in financing, with outstanding loans rising to Rs6.01 trillion, followed by significant growth in wholesale and retail trade and the telecommunications sector.

Consumer financing also remained strong, increasing 25.4% year-on-year to Rs1.145 trillion, while auto financing surged 38% to Rs381.68 billion, indicating improving consumer demand.

Despite the strong lending momentum, analysts noted that most of the growth remains concentrated in working capital financing, with investment-related borrowing still relatively subdued. They believe sustained capital expenditure will be key to achieving a broader and more durable economic recovery.