Karachi, September 17, 2025: The State Bank of Pakistan (SBP) has reported a sharp increase in credit card usage, with purchases and payments hitting Rs169 billion in August 2025, reflecting a 31.6% year-on-year growth compared with Rs128 billion recorded in August 2024.
On a monthly basis, credit card transactions also grew 3.6%, rising from Rs163 billion in July 2025. Analysts say the trend highlights growing consumer reliance on credit cards amid rising inflation and the increasing popularity of digital transactions in Pakistan’s urban centres.
The surge in plastic money spending comes at a time when households are facing mounting financial pressures due to elevated prices of essentials, energy tariffs, and a slowdown in real incomes. Financial experts suggest that while credit card growth indicates greater financial inclusion and digital adoption, it also reflects a higher cost of living pushing consumers toward short-term credit.
Meanwhile, Pakistan’s external accounts showed mixed trends. The SBP reported on Monday that remittances from overseas Pakistanis reached $3.1 billion in August 2025, up 7% from the same month last year. However, inflows dipped 1% month-on-month, reflecting pressures in traditional Gulf and Western corridors.
Economists caution that while strong remittances and higher credit card spending provide short-term relief to consumption and liquidity, they also underscore Pakistan’s dependence on external inflows and rising household debt risks.
