Private sector credit growth gathers pace amid stable economic outlook

August 04, 2026 (MLN): Pakistan's private sector is expanding at a healthy pace, with businesses increasingly turning to the banking sector for credit to finance their growth, a trend that reflects renewed confidence in the country's economic trajectory and points to stronger commercial activity ahead.

Adviser to the Finance Minister Khurram Schehzad highlighted this while speaking on Radio Pakistan.

Private businesses are securing financing specifically to expand their operations and scale up commercial activity, which is described as a natural response to an improving economic environment.

He said Pakistan's economic outlook remains stable, noting that several international rating agencies have revised the country's outlook from stable to positive, a shift he described as a clear signal that investor confidence has been restored after a prolonged period of uncertainty.

According to him, the broader economy is moving in the right direction, and the cumulative effect of ongoing economic activity is expected to bear fruit in the near future, benefiting both businesses and consumers alike.

Khurram Schehzad specifically highlighted the textile and food sectors, noting that companies operating in these industries are taking on significant funding to expand their operations.

He said this expansion is aimed at boosting export volumes while simultaneously strengthening supply to the domestic market, positioning these sectors as key drivers of the broader economic recovery.

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