Bank loans to the private sector as a whole increased from Rs. 9.17 trillion at the end of FY23 to Rs. 9.22 trillion in the current fiscal year 2023–24.The State Bank of Pakistan (SBP) reports that between July 2023 and January 5, 2024, net borrowing by the private sector was Rs. 57.4 billion, down from Rs. 418.9 billion during the same period the previous year. This represents an 86.3 percent year-over-year decline, or Rs. 361.5 billion, from the previous year.While lending a total of Rs. 452.6 billion in SPLY, conventional bank branches received Rs. 34.8 billion from the private sector between July 2023 and January 5, 2024.

Read More: Pakistan Received Foreign Loans of $6 Billion in First Half of FY24

From Rs. 426 billion in financing from Islamic banks in 2017 to Rs. 62.4 billion in financing this year, there was an 85.3 percent YoY fall. In comparison to a negative impact of Rs. 459.6 billion in SPLY, Islamic banking branches of conventional banks provided credit of Rs. 29.5 billion during the period under consideration.Between July 2023 and January 5, 2024, the government returned Rs. 814 billion to the central bank while borrowing Rs. 2.67 trillion from scheduled banks for budgetary support.