KARACHI – Banks’ investments have surpassed deposits for first time in the history of Pakistani banks.
Reports in local media quoting data from State Bank of Pakistan (SBP) said bank deposits jumped by 5.8% to a staggering Rs37,431 billion, marking 23.6% growth over the past year.
Banks’ investments skyrocketed 30% in just one year, reaching Rs37,910 billion. This means banks are now pumping more money into investments than they hold in deposits.
Over last year, banks made Rs8,781 billion in new investments, while their advances (loans) fell 7% to Rs14,880 billion by December 2025. As a result, the advances-to-deposits ratio tumbled from 53% to 39.8%, highlighting a significant drop in lending activity.
Investment-to-deposit ratio surged past 100% mark, climbing from 96% to 101.3%, signaling that banks are now investing more than the deposits they hold, a scenario that raises both eyebrows and questions about the future liquidity of Pakistan’s banking system.
Economists warn this could reshape the banking sector, as surging investments and shrinking loans may impact credit availability, interest rates, and overall economic growth.
Pakistan’s banks are now walking a financial tightrope, investments are booming, deposits are growing, but lending is shrinking. The coming months could reveal whether this high-stakes bet pays off or triggers turbulence in the banking sector.
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