Pakistan’s banking sector continued its growth trajectory in January 2026, with total deposits climbing 18.2 percent year-on-year to Rs. 36.6 trillion, according to data compiled by Topline Securities.

In contrast, advances fell by 3 percent compared to January 2025, totaling Rs. 14.29 trillion, down from Rs. 14.72 trillion, indicating weaker demand for credit.

Investments, however, surged sharply, rising 29.4 percent year-on-year to Rs. 38.8 trillion, up from Rs. 30.02 trillion in the same month last year.

The Advances-to-Deposits Ratio (ADR) declined to 39 percent, down from 47.5 percent a year earlier, while the Investments-to-Deposits Ratio (IDR) increased to 106 percent, reflecting banks’ preference for government securities over private sector lending.

On a monthly basis, deposits fell 2.1 percent from December 2025, advances dropped 4 percent, and investments rose modestly by 2.5 percent.

Topline Securities projects that total deposits could grow between 10 and 15 percent throughout 2026.