Pakistan’s businesses repaid 91.8 billion rupees in debt in 100 days — Dawn

In Pakistan, the private sector net repaid 91.8 billion Pakistani rupees in bank debt during the first 100 days of the current FY27 fiscal year. This is nearly three times more than in the same period of the previous fiscal year, when net repayments amounted to 31.7 billion rupees.

As Dawn reports, State Bank of Pakistan data cover the period from July 1 to October 9. Companies continue to repay loans rather than obtain new bank financing, indicating weak investment activity.

Lending dynamics

The only category to record net lending to the private sector was the Islamic banking divisions of conventional banks. They issued loans worth 138.6 billion rupees, compared with 63.4 billion rupees a year earlier.

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At the same time, Islamic banks recorded net debt repayments of 107.8 billion rupees, while in the corresponding period of FY26 this figure stood at 38 billion rupees. In conventional banks, net repayments reached 122.6 billion rupees, compared with 57 billion rupees last year.

Economic background

Over the full FY26, Pakistan’s private sector obtained 1.46 trillion rupees in bank loans despite weak investment activity. The country’s economy grew by 3.7% in FY26, and over the past three years the government has failed to raise growth above the 3.5–3.7% range.

Economic prospects are also affected by domestic uncertainty and an unfavorable regional situation. Rising oil prices are increasing pressure on Pakistan’s import-dependent economy, while tensions surrounding Saudi Arabia, Yemen, and Iran are adding uncertainty to regional economic prospects.