Pakistan non-bank financial sector assets rose 21% in second half of 2025 — SECP

A money changer counts Pakistan's currency at a market in Karachi on January 6, 2023. (AFP/File)
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Updated 25 February 2026
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Pakistan non-bank financial sector assets rose 21% in second half of 2025 — SECP

  • Mutual fund assets reached $16.1 billion, accounting for 66% of total industry assets
  • NBFC lending assets jumped 65% as Shariah-compliant assets grew to 36% of the sector

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.
 


Four people, including two policemen, killed in twin blasts in northwest Pakistan

Updated 07 March 2026
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Four people, including two policemen, killed in twin blasts in northwest Pakistan

  • Attack on police van in South Waziristan and motorbike-mounted IED in Lakki Marwat hits KP province
  • Violence comes amid a surge in militancy and cross-border clashes between Pakistan and Afghanistan

ISLAMABAD: At least four people, including two policemen, were killed and about 20 others wounded in two separate blasts in Pakistan’s northwestern Khyber Pakhtunkhwa province on Saturday, officials said, the latest violence in a region grappling with militant violence.

One explosion targeted a police patrol van in Wana, the main town of South Waziristan district near the Afghan border, while another blast caused by explosives mounted on a motorbike struck a market area in Lakki Marwat district, according to police officials and preliminary reports.

The incidents come amid rising militant violence in Pakistan’s northwest, where authorities say armed groups operate from across the border in Afghanistan, straining relations between Islamabad and the Taliban administration in Kabul, with both sides engaged in a military conflict since last month.

“The control room received information in the evening about a bomb blast targeting a police van in Wana Bazaar,” a police official in the area, who did not want to be named, confirmed while speaking to Arab News over the phone.

He confirmed two deaths in the incident while saying more than 25 people had been injured.

The official said rescue teams responded promptly and shifted three seriously injured people to a nearby hospital in Wana.

In another incident during the day in Lakki Marwat, an improvised explosive device attached to a motorbike exploded near shops.

“Two people have been killed and about 10 have been injured in an IED blast in Lakki Marwat,” Raza Khan, Deputy Superintendent of Police in Bannu, told Arab News.

“The deceased are identified as Shoaib Ur Rehman and Furqan Ullah,” he added. “Shoaib, the owner of the shop, was the brother of the Lakki peace committee head.”

Peace committees in the region are informal, community-based groups that work with security forces to report militant activity and maintain order, making their members frequent targets of attacks.

Pakistan’s Interior Minister Mohsin Naqvi condemned the attacks and expressed grief over the incidents.

“I strongly condemn the blast near a police patrolling vehicle in Wana Bazaar,” Naqvi said in a statement, confirming the killing of four people, including two police personnel.

“Khyber Pakhtunkhwa police are on the front line in the war against terrorism,” he said, noting the force had made “unforgettable sacrifices” in the fight against militant groups.

Militant violence has surged in Pakistan’s border regions in recent months, particularly in Khyber Pakhtunkhwa and Balochistan provinces.
Islamabad has repeatedly accused the Afghan Taliban government of allowing militant groups, including the Tehreek-e-Taliban Pakistan (TTP), to operate from Afghan territory — a charge Kabul denies — as cross-border tensions between the two neighbors have escalated.