An employee counts Pakistani rupee notes at a bank in Peshawar, Pakistan August 22, 2023. REUTERS/Fayaz Aziz
Pakistan’s banking sector continued to show steady expansion, with total deposits rising 18.2 percent year-on-year to Rs. 36.6 trillion in January 2026, according to data compiled by Topline Securities.
Meanwhile, advances dropped by 3 percent YoY to Rs. 14.29 trillion, reflecting lower credit demand compared to last year’s Rs. 14.72 trillion.
Meanwhile, investments grew sharply by 29.4 percent, reaching Rs. 38.8 trillion compared to Rs. 30.02 trillion in the same month last year.
The Advances-to-Deposits Ratio (ADR) stood at 39 percent in January 2026, down 8.5 percent YoY compared to 47.5 percent a year ago.
In contrast, the Investments-to-Deposits Ratio (IDR) rose to 106 percent, up by 9.2 percent YoY, showing banks’ growing interest in government papers over private sector lending.
On a monthly basis, deposits decreased by 2.1 percent, while advances also fell by 4 percent compared to December 2025. Investments rose marginally by 2.5 percent from December 2025.
Brokerage firms like Topline Securities expect deposit to grow in a range of 10-15 percent during 2026.