Banks’ investment in govt papers rises Rs5.8tr

Scheduled banks’ investments rose by over Rs5.8 trillion during the first nine months of 2025, reflecting both their continued preference for government securities and the state’s growing financing needs. According to State Bank of Pakistan (SBP) data, total investments of scheduled banks stood at Rs35.85 trillion by September 2025, up from Rs30tr in January — an increase of 19.3 per cent. The banking sector’s assets reached 52.4 per cent of GDP in FY25, compared to 49.1pc in the preceding fiscal year. The SBP noted that the sector remained stable across key indicators, though concerns persist over the limited flow of credit to the private sector. Banks continue to rely heavily on government papers for profits, while private lending remains subdued.