Banks likely to stay dependent on govt borrowing for profits

• Limited private sector lending options may persist • Federal govt borrowing from banks rises to Rs5.9tr in FY26 • Private sector receives around Rs1.4tr KARACHI: The country’s banking sector is likely to remain dependent on government borrowing for profits in the current fiscal year as limited private-sector lending opportunities continue to make banks one of the most lucrative sectors for the equity market and investors, financial industry sources said. “The options are limited for lending to the private sector and the situation will remain the same this year as witnessed in FY26,” said a senior banker. Despite a sharp increase in revenue during the last three years, government borrowing…