A report of the Ministry of Economic Affairs showed that Pakistan received only $7.6 billion in foreign loans during the first nine months of current fiscal year. PHOTO: file
The Pakistan Banks Association (PBA) has said that the banking sector has made a robust contribution to Pakistan's ongoing economic revival, citing a record surge in private sector credit during the current financial year.
Commercial banks have extended Rs1.5 trillion in financing to the private sector in FY26, a surge in liquidity that is driving 8.33% growth in large-scale manufacturing (LSM), reflecting the sector's role in supporting industrial output and job creation, the PBA said in a statement.
"The latest data demonstrates a clear fundamental economic reality: when government borrowing moderates, banks immediately and effectively deploy capital to business, industry and agriculture," said Zafar Masud, Chairman of PBA.
"The banking sector has pivoted liquidity from sovereign debt to the productive private economy, serving as the primary engine for the recent industrial recovery," he added.
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