Banking sector shows steady performance

The banking sector of Pakistan has demonstrated steady performance with key financial soundness indicators pointing to stability in capital adequacy, earnings, and asset quality. Economic Survey of Pakistan for the year 2025-26 also highlighted that the financial sector has maintained resilience amid broader economic pressures, underscoring gradual improvements in overall banking sector fundamentals. According to survey, the banking sector’s asset base grew by 17.8 percent YoY during CY2025, reaching Rs 63.2 trillion by the end of December 2025, mainly driven by investments. On the funding side, deposit growth accelerated to 24.7 percent to Rs 37.659 trillion by end of December 2025. Deposits remained the mainstay of funding, financing 62.7 percent of the asset base, while borrowings financed 25.1 percent.