Pakistan banking deposits rise to Rs40.83 trillion amid rising debt

Pakistan’s banking sector saw a significant annual increase in deposits, reaching Rs40.83 trillion in July 2026. According to State Bank of Pakistan data, this represents a 19.1% year-on-year rise from Rs34.28 trillion in July 2025. While annual growth was strong, monthly deposits saw a marginal decline of 0.1% from June 2026 levels.

Banking advances reached Rs14.46 trillion in July 2026, a 9% increase compared to the previous year, though this was a 5.3% decrease from the previous month. The advance-to-deposit ratio (ADR) stood at 35.4%, down from 38.7% in July 2025.

Simultaneously, Pakistan’s foreign debt rose to Rs24,109 billion by July 2026, an increase of over Rs850 billion from the previous year. Domestic borrowing also grew significantly, increasing by more than Rs4,000 billion during the same period, adding to the overall government debt burden.