Pakistan’s non-bank financial sector surges to Rs6.84trn in H2 2025 as NBFC lending, mutual funds boom

Pakistan’s non-bank financial sector maintained robust growth momentum in the second half of 2025, with total assets rising 21 percent to Rs6.84 trillion by December 31, up from Rs5.635 trillion at the end of June, according to the Securities and Exchange Commission of Pakistan (SECP).

The sector’s lending segment led the expansion, with non-bank financial companies (NBFCs) posting a 65 percent surge in assets to Rs824 billion over six months. Shariah-compliant assets across the industry reached Rs2.47 trillion, representing 36 percent of total sector assets.

Fund management also showed strong performance, with assets up 17 percent. Mutual funds remained the largest subsector, managing Rs4.5 trillion or 66.3 percent of overall non-bank financial assets. The number of funds and plans grew from 369 to 409, with portfolios diversified across money market funds (44 percent), income funds (23 percent) and equity funds (14 percent).

Retail participation continued to climb, with mutual fund investor accounts reaching 845,000 by end-December 2025, up 8 percent since June 2025 and double the level recorded in December 2022. Voluntary pension schemes also saw rapid uptake, with participant accounts rising 30 percent over six months to 143,154, a 170 percent jump since December 2022.

The number of registered NBFCs and Modaraba entities rose to 185 from 174 in June 2025, highlighting sustained sector expansion.

The SECP said it is committed to fostering a transparent, resilient and inclusive non-bank financial sector to mobilise savings, strengthen economic stability and support sustainable growth in Pakistan’s financial system.