Karachi, April 25, 2025 – Pakistan’s banking sector has recorded a historic milestone as total bank deposits surged to an unprecedented Rs31.63 trillion by the end of March 2025, according to the latest data released by the State Bank of Pakistan (SBP) on Thursday.
This remarkable growth in bank deposits marks a significant recovery from previous months. The last record was set at Rs31.34 trillion in September 2024. However, deposits had subsequently declined, falling to Rs30.48 trillion by the end of February 2025. The sharp rebound in March, with an increase of Rs1.17 trillion in just one month, has surprised market observers.
Interestingly, this surge in deposits comes despite a substantial decline in the interest rate environment. The State Bank of Pakistan had aggressively cut its benchmark policy rate from a historic high of 22% down to 12% between June 2024 and March 2025, aiming to stimulate economic growth. Typically, lower interest rates reduce the incentive for depositors to park their funds in banks, making the recent spike even more notable.
Analysts attribute this trend to growing public confidence in the stability and safety of Pakistan’s banking sector. Even with reduced returns, people appear to consider banks a reliable and secure option for safeguarding their money. Experts also suggest that the rise in deposits may reflect broader economic shifts, including reduced spending and higher savings amidst uncertain investment opportunities elsewhere.
When compared to the same period last year, the bank deposits in March 2025 are up by approximately 12%, highlighting steady growth in the banking system’s deposit base. This ongoing expansion underscores the resilience and trust in Pakistan’s financial institutions, even in a changing monetary landscape.
With banks continuing to attract record-level deposits, the financial sector’s role in supporting economic activity and channeling savings into productive avenues remains as vital as ever.