Pakistan’s banking sector strengthened its funding base in 2025 as customers increasingly parked money in current accounts, which pay little to no interest, helping banks support profits.

According to data from Arif Habib Limited (AHL), the share of current accounts rose to 41% of total deposits in 2025, up from 36% in 2024. This shift indicates banks are relying more on low-cost funding sources.

In absolute terms, current account deposits grew by Rs. 4.7 trillion, reaching Rs. 16.3 trillion, reflecting broad-based deposit growth across the system.

The higher proportion of low-cost deposits is expected to improve banks’ net interest margins (NIMs), a key indicator of profitability.

Among major banks, Standard Chartered Bank Pakistan leads with 59% of deposits in current accounts, followed by United Bank Limited at 51%, MCB Bank at 49%, and Meezan Bank at 48%.

Overall, the trend points to improved funding efficiency in the sector, which can help sustain earnings even under challenging economic conditions.