Karachi, June 23, 2025 — Pakistan’s banking sector has reached a historic benchmark, with total deposits climbing to an all-time high of Rs32.72 trillion by the end of May 2025, as per the latest data released by the State Bank of Pakistan (SBP). This milestone reflects continued public trust in the banking system, even amid a challenging economic environment.
The figure marks a 1.24% increase over the previous month, when deposits stood at Rs32.32 trillion, and an 11.48% year-on-year rise from Rs29.35 trillion in May 2024. The surge in banking deposits is being interpreted as a strong indicator of financial system resilience and growing economic confidence among depositors.
Interestingly, the steady growth in deposits has occurred despite a notable decline in the central bank’s benchmark interest rate. Since the start of the current fiscal year, the SBP has shifted towards a more accommodative monetary policy stance. Over the past twelve months, the policy rate has been cut from a record-high 22% to 11%.
This reduction in rates, intended to stimulate lending and business activity, has not discouraged individuals and institutions from placing their money in the banking system. Analysts believe that the strong performance of the stock market, combined with relative macroeconomic stability following the announcement of the federal budget, has played a role in shaping depositor sentiment.
Another significant factor driving this rise in banking deposits is the rapid expansion of digital banking services. Increased reliance on mobile banking apps, online transfers, and digital wallets has brought a broader segment of the population into the formal financial net. Financial inclusion is expanding as rural and previously underbanked communities adopt digital tools, making it easier and safer for people to manage their finances and store wealth securely.
Experts highlight that the continued inflow of deposits underlines confidence in the regulated financial system. The SBP has emphasized that a healthy deposit base is vital for ensuring banking sector liquidity, supporting credit growth, and maintaining macroeconomic stability in the long run.