ISLAMABAD: Pakistan’s non-bank financial sector expanded in the second half of 2025, with total assets rising 21% to Rs6.84 trillion ($24.4 billion) by Dec. 31, the Securities and Exchange Commission of Pakistan (SECP) said on Wednesday.

The growth, up from Rs5.635 trillion ($20.1 billion) in June 2025, was driven by strong performance in fund management and lending segments, according to the regulator’s latest report, reflecting increased investor participation and expansion of Shariah-compliant assets.

“The fund management sector recorded solid growth of 17% during the period,” the SECP said in the statement.

“Mutual funds remained the largest sub-sector, managing assets of Rs. 4.5 trillion [$16.1 billion], which account for 66.3% of total industry assets.”

“The number of funds and plans increased from 369 to 409,” it continued. “Mutual fund investments remained well diversified, with 44% allocated to money market funds, 23% to income funds, and 14% to equity funds.”

The statement said investor participation also witnessed an increase, with mutual fund investor accounts reaching 845,000 by the end of December, an 8 percent rise since June 2025 and double the level recorded in December 2022.

Participation in voluntary pension schemes rose to 143,154 accounts, marking a 30% increase over six months and a 170% rise compared with December 2022.

The lending segment of non-bank financial companies (NBFCs) posted particularly strong growth, with assets climbing 65% over the six-month period to Rs824 billion ($2.9 billion).

Shariah-compliant assets totaled Rs2.47 trillion ($8.8 billion), accounting for 36% of overall industry assets, the report said.

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

Pakistan’s non-bank financial sector plays a growing role in capital formation and savings mobilization, complementing the banking system in a country where financial inclusion remains a policy priority.