KARACHI: Commercial banks in Pakistan recorded an increase of more than Rs141 billion in deposits from the manufacturing sector in March 2026, reflecting shifting liquidity patterns amid heightened geopolitical uncertainty, according to data released by the State Bank of Pakistan (SBP).
Total manufacturing-sector deposits rose to Rs1.82 trillion in March from Rs1.68 trillion in February, according to industry data, marking a month-on-month increase driven by multiple sub-sectors including automobiles, petroleum refining and food processing.
The increase came during a period of elevated regional tensions linked to the Iran conflict, which analysts said may have contributed to precautionary cash positioning by businesses and exporters.
Within the manufacturing sector, deposits from the food industry rose to Rs350.01 billion in March, compared with Rs315.56 billion in February. Beverage manufacturers also posted gains, rising to Rs61.70 billion from Rs49.99 billion.
The textiles sector, a key pillar of Pakistan’s export economy, saw deposits increase to Rs258.77 billion from Rs246.82 billion, while the chemicals sector rose to Rs137.82 billion from Rs123.30 billion.
Deposits from the petroleum refining segment climbed to Rs164.72 billion in March, up from Rs141.67 billion in the previous month. The automobile manufacturing segment also recorded a sharp increase, rising to Rs110.70 billion from Rs78.63 billion.
Other notable gains were seen in basic metals, machinery and equipment, rubber and plastics, and repair-related manufacturing activities.
Some segments, however, posted declines. Deposits in electrical equipment fell to Rs66.23 billion from Rs78.92 billion, while fabricated metal products and computer-related manufacturing also recorded marginal decreases.
Analysts said the overall rise suggests improved liquidity flows within the industrial sector, possibly driven by export receipts, seasonal business activity and precautionary cash holdings amid external uncertainty.
They added that the sharp rise in automobile and petroleum-related deposits reflects stronger demand cycles and inventory financing requirements, while textile growth remains aligned with export recovery trends.
Banking sector officials said manufacturing deposits are a key indicator of industrial activity and cash flow stability, particularly in emerging economies where external shocks often influence liquidity behaviour.
However, they cautioned that monthly fluctuations should be interpreted carefully, as sectoral deposit movements can be affected by contract cycles, import payments and temporary cash hoarding.
Economists expect manufacturing liquidity trends to remain sensitive to geopolitical developments, currency stability and energy price movements in the coming months.
