ISLAMABAD: Pakistan’s non-bank financial (NBFI/NBFC) sector maintained strong growth momentum during the second half of 2025, with total assets reaching Rs6.84 trillion as of December 31, 2025, up from Rs5.63 trillion on June 30, 2025, a 21 percent increase in six months, according to the latest report issued by the Securities and Exchange Commission of Pakistan (SECP).
The expansion reflects robust growth across both fund management and lending segments, indicating rising investor confidence, deepening capital markets, and continued progress toward financial inclusion.
Since June 2022, the sector’s assets have grown by more than 215 percent, with a compound annual growth rate of approximately 39 percent, highlighting the rapid evolution of Pakistan’s non-bank financial landscape.
READ MORE: Licensed & notified entities: NBFCs’ assets total Rs6.84trn on January 1
Fund management dominates industry: The fund management segment remained the backbone of the sector, accounting for the majority of assets. Mutual funds and plans alone managed about Rs4.54 trillion, representing 66.3 percent of total industry assets, making them by far the largest sub-sector.
The number of mutual funds and plans increased to 409, while assets have grown by roughly 254 percent since June 2022, underscoring sustained investor demand for professionally managed investment products.
Investment allocation remained diversified across categories. Money market funds constituted the largest share, followed by income and equity funds, reflecting investors’ preference for relatively lower-risk instruments amid evolving macroeconomic conditions.
Investor participation also expanded sharply. Active mutual fund investor accounts reached approximately 844,919, with total investment value exceeding Rs4.46 trillion, demonstrating increasing retail and institutional engagement in capital market instruments.
Discretionary and non-discretionary portfolios collectively held nearly Rs992 billion, accounting for about 14.5 percent of total industry assets and recording notable growth over the period.
Pension funds and REITs expand: Assets of voluntary pension schemes rose to around Rs136 billion, supported by steady growth in subscriber accounts and a balanced allocation across equity, debt, and money market sub-funds.
Shariah-compliant pension funds accounted for roughly two-thirds of total pension assets, highlighting strong demand for Islamic retirement savings products.
Real Estate Investment Trusts (REITs) also showed progress, with assets increasing to approximately Rs219 billion, while private equity and venture capital funds maintained assets of around Rs10 billion, reflecting gradual development of alternative investment channels.
Lending NBFCs post strong gains: The lending segment of NBFCs recorded particularly strong performance, with total assets rising to about Rs824 billion, a sharp 65 percent increase over six months.
Within this segment, Non-bank microfinance companies held assets of about Rs410 billion, supporting financial inclusion, Investment banks accounted for approximately Rs339 billion and Modarabas held around Rs68 billion.
Leasing, housing finance, and discounting companies collectively represented only a small fraction of total assets.
Loans and advances constituted the largest component of assets in lending NBFCs, underscoring their role in providing credit to underserved segments of the economy.
Islamic finance gaining ground: Shariah-compliant assets continued to expand, reaching approximately Rs2.47 trillion, or about 36 percent of total industry assets. Since June 2022, Islamic assets have grown by nearly 295 percent, outpacing conventional assets and reflecting strong demand for Shariah-compliant financial solutions.
The number of registered NBFCs and Modaraba entities increased to 185 by December 2025, compared with 174 in June 2025, indicating sustained entry and expansion within the sector. Overall, the industry comprised 69 fund management entities and 116 lending entities.
The SECP views the NBFI sector as a critical pillar of Pakistan’s financial system, complementing banking institutions by mobilizing savings, channeling investment into productive sectors, and expanding access to finance.
Analysts note that continued regulatory support, digitalization, development of Islamic finance, and growing retail participation could further accelerate growth, positioning the sector as an increasingly important driver of capital market depth and economic stability.
Copyright Business Recorder, 2026
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