ISLAMABAD, Aug 02 (APP):Adviser to Finance Minister Khurram Schehzad has said that private sector credit expanded by Rs 1.46 trillion (14.8%) during FY26, reaching Rs 11.38 trillion—the strongest annual increase in four years. The business credit increased by Rs 1.18 trillion (14.0%), accounting for over 80% of the overall increase in private sector credit, reflecting rising financing for productive economic activity, he posted on his official social media handle X. …
Private sector credit grows about 15% in FY26, strongest expansion in 4 years: Khurram
ISLAMABAD, Aug 02 (APP):Adviser to Finance Minister Khurram Schehzad has said that private sector credit expanded by Rs 1.46 trillion (14.8%) during FY26, reaching Rs 11.38 trillion—the strongest annual increase in four years.
The business credit increased by Rs 1.18 trillion (14.0%), accounting for over 80% of the overall increase in private sector credit, reflecting rising financing for productive economic activity, he posted on his official social media handle X.
Nearly 89% of the increase in private-sector business credit was concentrated in three productive sectors including manufacturing 56%, wholesale & retail trade 18%, agriculture: 15% ,manufacturing alone accounted for Rs 657 billion of new credit, highlighting broad-based industrial expansion, he added.
While strong financing to trade and agriculture points to rising production, commerce and investment across the economy.
He informed the private-sector credit is one of the clearest leading indicators of economic expansion. Businesses borrow to invest, expand capacity, modernize operations and prepare for future demand—not merely to sustain existing operations.
The broad-based increase in financing across Pakistan’s productive sectors reflects strengthening business confidence, rising private investment, and the positive impact of macroeconomic stability, easing financial conditions and ongoing structural reforms, he remarked.
The composition of credit growth matters as much as its size, he said adding that financing is increasingly flowing towards productive sectors that expand capacity, strengthen competitiveness and support Pakistan’s transition towards a private sector-led, investment-driven, export-oriented and sustainable growth model.
