{
  "id": 15230917,
  "title": "Pakistan bank deposits double to Rs40.83tr in 4 years, but lending to govt raises growth concerns",
  "url": "https://urgent.news/2026/10/17/pakistan-bank-deposits-double-to-rs40-83tr-in-4-years-but-lending-to",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-17T15:46:43.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40444685/pakistan-bank-deposits-double-to-rs4083tr-in-4-years-but-lending-to-govt-raises-growth-concerns"
  },
  "original_language": "en",
  "account": "In just four years, the amount of money deposited in Pakistan's scheduled banks has nearly doubled, reaching Rs40.83 trillion as of September 2026. This surge in the banking system's deposit base has sparked concerns about whether the funds are being directed towards productive economic activities or are instead fueling government borrowing.\n\nAccording to former minister and chairman of Pakistan Economic Policy and Business Development, Dr Gohar Ejaz, the total deposits held by scheduled banks increased by Rs19.83 trillion between September 2022 and September 2026. While the expansion in deposits presents a substantial pool of financial resources, the key question remains whether these funds are being channeled towards businesses, industries, and private-sector investment or are increasingly being absorbed by government borrowing.\n\nEjaz emphasized that for sustainable economic growth, the money mobilized by banks must ultimately reach businesses and industries. He argued that economic growth hinges on productive economic activity rather than lending to the government. The growth in deposits represents a significant opportunity for industrial expansion, business investment, job creation, and overall economic activity. However, simply having more deposits does not guarantee an increase in private-sector credit or investment.\n\nThe critical challenge now lies in ensuring that banks convert this burgeoning deposit base into financing for productive sectors, particularly for businesses seeking funds to expand their operations, modernize production facilities, and generate employment. Banks may be inclined to lend to the government, especially when considering prevailing returns and credit risks. In such cases, banks might prioritize lending to the government over extending loans to businesses, especially smaller enterprises that often face higher borrowing costs and stringent collateral requirements.\n\nA persistent trend towards government securities could potentially constrain the availability of credit for businesses, thereby limiting investment and slowing down the private sector's contribution to economic growth.",
  "summary": "Deposits held by Pakistan’s scheduled banks have nearly doubled to Rs40.83 trillion in September 2026 from Rs21 trillion four years ago, highlighting a massive expansion in the banking system’s deposit base but raising questions about the flow of funds into productive economic activities. Former minister and chairman Pakistan Economic Policy and Business Development Dr Gohar Ejaz said on…",
  "key_points": [
    "Pakistan's scheduled bank deposits doubled to Rs40.83 trillion in 4 years.",
    "Concerns arise over deposits funding government borrowing instead of private sector.",
    "Dr Gohar Ejaz stresses need for deposits to fuel businesses and industry growth."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}