Pakistan Sees Significant Rise in Private Investment and Business Activity, Marking Key Economic Progress

Islamabad (Web Desk):

Pakistan witnessed a notable increase in private-sector financing and business activity during Fiscal Year 2025–26, reflecting continued progress toward economic stability and sustainable growth. According to Adviser to the Finance Minister Khurram Shehzad, lending to the private sector increased by nearly 15%, marking the highest annual growth in the past four years.

Private Sector Lending Reaches Four-Year High

Presenting the latest economic figures, Khurram Shehzad highlighted the following developments:

• Net private-sector credit expanded by PKR 1.46 trillion during FY2025–26.
• As a result, total outstanding private-sector credit reached a record PKR 11.38 trillion.
• He noted that the accelerated flow of financing to businesses reflects growing production, expanding commercial activity, and improving economic momentum across the country.

Manufacturing and Agriculture Lead Growth

According to the adviser, government policies have helped channel financing toward productive sectors of the economy:

• 89% of new loans were directed to key sectors, including manufacturing, wholesale and retail trade, and agriculture.
• Manufacturing emerged as the largest recipient, securing PKR 657 billion in new financing, indicating expansion in industrial capacity and production.
• Increased lending to the trade and agriculture sectors has also supported domestic production, employment generation, and higher commercial activity.

Growing Business Confidence and Sustainable Economic Outlook

Khurram Shehzad emphasized that the strong growth in private-sector lending is an encouraging indicator of rising investor confidence, improving macroeconomic stability, and investment-driven sustainable economic growth. He added that the trend reflects a strengthening business environment and greater confidence among financial institutions in supporting productive economic activity.