Private sector borrowing from banks has increased dramatically during the first nine months of fiscal year 2024-25, according to data released by the State Bank of Pakistan (SBP).

Net borrowing by the private sector reached Rs. 481 billion between July 2024 and March 21, 2025, representing a 352 percent year-on-year increase compared to the Rs. 106 billion recorded during the same period last fiscal year.

Islamic banks led this growth, with their financing to the private sector surging 338 percent to Rs. 378 billion, up from Rs. 86.3 billion in the previous year. Islamic banking branches of conventional banks contributed Rs. 115.8 billion, compared to Rs. 35.5 billion last year. Meanwhile, conventional banking branches saw a slight decline, providing Rs. 13 billion compared to Rs. 15.4 billion in the same period last year.

The data also revealed significant government borrowing patterns, with the administration repaying Rs. 406 billion to the central bank while simultaneously borrowing Rs. 1.309 trillion from scheduled banks for budgetary support during the period under review.