Overview
- The State Bank of Pakistan's Financial Stability Review, released Tuesday, said the financial sector grew 15.1% in 2025 and financial depth rose to 67.1% of GDP.
- Banks’ balance sheets expanded 17.8% in 2025 and the sector’s capital adequacy ratio reached 20.8%, well above required levels.
- Asset quality improved as non-performing loans fell to 6.1% and provisioning coverage increased to 107.7%, lowering net credit risk.
- The SBP warned that conflict in the Middle East could keep oil prices high and pressure Pakistan’s external account through costlier imports and supply disruptions.
- After staff-level IMF reviews were completed in March, a board decision expected in early May would support reserves as SBP stress tests point to resilient banks over the next three years.