Deposit Growth Strong in Banks, Private Sector Loans Remain Stagnant

While deposit growth in banks remains strong, lending in the private sector has stagnated. Overall inflation has fallen to single digits due to declining food prices. However, the National Board of Revenue continues to lag behind its revenue targets despite years of growth.

These findings are highlighted in the November Economic Update and Outlook report released by the General Economics Division (GED) of the Planning Commission. The report was published on Monday.

The report notes instability in exports, though a moderate recovery is expected. With food prices stabilising and supply conditions improving, overall inflation has declined. Slow stability in domestic supply chains and reduced pressure from imported goods caused overall inflation to drop from 10.87 percent in October 2024 to 8.17 percent in October 2025.

Food inflation decreased from 12.66 percent to 7.08 percent in October. External inflation rose slightly to 9.13 percent, reflecting ongoing pressures on housing, transport, and healthcare expenditure.

Rice prices began to fall in the first half of 2025. Domestic stocks increased due to new Aman crops, imports, and government purchases. Government initiatives also helped reduce the average retail price of rice. Overall rice inflation fell to 13.77 percent in October 2025. Fish and meat continue to play a significant role in food inflation.

KhaborwalaAJ