ISLAMABAD, Oct. 29 (Xinhua) — Scheduled banks in Pakistan increased their investments in government securities by more than 5.8 trillion rupees (about 20.64 billion U.S. dollars) during the first nine months of 2025, reflecting both their continued preference for risk-free assets and the government’s rising financing needs, official data showed Wednesday.
According to figures released by the State Bank of Pakistan (SBP), total investments of scheduled banks rose to 35.85 trillion rupees by September 2025 from 30 trillion rupees in January, marking a 19.3 percent increase.
The banking sector’s total assets expanded to 52.4 percent of gross domestic product (GDP) in the 2024-25 fiscal year, up from 49.1 percent a year earlier, the SBP said.
Data showed that banks continued to prefer government papers, from which they earn the bulk of their profits, while private lending remains subdued.
Corporate investments in government securities also increased, reaching 7.86 trillion rupees by June 2025, or roughly 17 percent of total holdings, added the SBP.
Meanwhile, deposits in the banking system rose by 4.19 trillion rupees over the same nine-month period, reaching 35.21 trillion rupees by September 2025 from 31 trillion rupees in January. (1 U.S. dollar equals 281 Pakistani rupees) ■
