Karachi: For the first time, bank investments in Pakistan have exceeded total deposits, according to the latest data released by the State Bank of Pakistan (SBP).
As of December 2025, bank deposits increased by 5.8%, reaching PKR 37,431 billion, marking a 23.6% growth over the past 12 months. During the same period, bank investments grew by 30%, pushing the total investment volume to PKR 37,910 billion.
The SBP report highlighted that banks made fresh investments totaling PKR 8,781 billion over the year, while bank advances stood at PKR 14,880 billion by December 2025. Interestingly, advances decreased by 7% over the same period, indicating a shift in banks’ preference towards investment instruments rather than lending.
This change also impacted key financial ratios: the advance-to-deposit ratio dropped from 53% to 39.8%, while the investment-to-deposit ratio rose from 96% to 101.3%, reflecting a stronger inclination of banks towards investments relative to their deposit base.
The trend suggests that banks are increasingly channeling funds into government securities and other investment avenues instead of extending loans to businesses and consumers. Economists believe that while this strengthens banks’ balance sheets, it could affect credit availability in the real economy, especially for small and medium enterprises that rely on bank financing.
The SBP data underscores a structural shift in the banking sector, where profitability and risk management through investments are being prioritized over traditional lending activities. Analysts are closely monitoring whether this trend will continue and how it might influence economic growth and liquidity in Pakistan.
