Pakistan, July 15 -- Pakistan's banking sector remained cautious in June 2025, as the Advance-to-Deposit Ratio (ADR) dropped to 38.1%. This is a decline from 39.8% in May and 40% in June 2024. The data, released by Arif Habib Limited, shows that banks are still avoiding risk by limiting loans to the private sector. Despite some signs of increased demand for loans, banks are hesitant to lend aggressively.

Meanwhile, banks continue to favour investments in government securities over private credit. The Investment-to-Deposit Ratio (IDR) stood at 103% in June. Though slightly down from 105.8% in May, it remains much higher than 96.9% a year ago. This shows banks still prefer government lending due to better returns and lower risk.

Analysts ...