Pakistan’s non-bank financial sector posts strong growth

2026-02-25 - 13:13

Pakistan’s non-bank financial sector recorded 21 per cent growth during the first half of the current fiscal year, with total assets rising to Rs6.84 trillion as of December 31, 2025, compared to Rs5.635 trillion on June 30, 2025. According to the latest report issued by the Securities and Exchange Commission of Pakistan (SECP), the industry experienced robust expansion across both fund management and lending segments, reflecting growing investor confidence and continued progress toward financial inclusion. The fund management sector recorded solid growth of 17 per cent during the period. Mutual funds remained the largest sub-sector, managing assets of Rs 4.5 trillion, which accounts for 66.3 per cent of total industry assets. The number of funds and plans increased from 369 to 409. Mutual fund investments remained well diversified, with 44 per cent allocated to money market funds, 23 per cent to income funds, and 14 per cent to equity funds. Investor participation also expanded significantly, with the number of mutual fund investor accounts reaching 845,000 as of December 31, 2025, representing an 8 per cent increase since June 2025. Notably, the number of investor accounts has doubled since December 2022, indicating growing retail engagement in capital market instruments. Participation in voluntary pension schemes also surged, with participant accounts rising to 143,154 by December 31, 2025, reflecting 30 per cent growth since June 2025 and an impressive 170 per cent increase since December 2022. The lending segment of non-bank financial companies (NBFCs) recorded particularly strong performance, with assets increasing by 65 per cent over six months to reach Rs824 billion. Across the sector, Shariah-compliant assets totalled Rs2.47 trillion, representing 36 per cent of overall industry assets. The number of registered NBFCs and Modaraba entities increased to 185, up from 174 in June 2025, underscoring the sector’s sustained expansion. Punjab begins companies’ registration under CM IT-Internship Program