A dangerously low national savings rate is a problem that people often forget about when they talk about Pakistan’s economy.
The State Bank of Pakistan’s 2025 Economic Outlook says that household and business savings are now at some of the lowest levels in South Asia.
This drop is now a major threat to long-term investment, job growth, and financial stability.
The savings rate keeps going down
Pakistan’s gross domestic savings rate is only 13.6% of GDP in 2025. In India, it’s over 30%, and in Bangladesh, it’s 25%. The low rate makes it hard for the country to pay for development projects on its own, so it has to rely heavily on foreign loans, IMF support, and remittances.
“When people save less, the economy has to borrow more from outside sources. It’s like living paycheck to paycheck, but on a national level,” said a senior economist at the Pakistan Institute of Development Economics (PIDE).
Why Pakistan Has Trouble Saving
High inflation and the cost of living
Rising prices for food, gas, and utilities have made real wages go down. When monthly budgets barely cover the basics, it’s almost impossible for many Pakistanis to save money.
How people spend money in different cultures
In Pakistan, people are encouraged to spend a lot of money on weddings, real estate, and gold. This money often comes from loans or family pooling, not savings.
Low levels of financial inclusion
The World Bank says that only 21% of adults in Pakistan have a bank account.
Not being able to use banking tools, savings accounts, and learn about money makes it very hard to save money.
The job market is not stable.
Many families live on daily cash flow instead of long-term financial plans because unemployment is going up and informal work is taking over the economy.
Pakistan’s low savings aren’t just a number; they show how millions of people are stressed about money every day. The country is at risk of a cycle of borrowing instead of building if there aren’t strong reforms and public awareness.
But if policymakers, banks, and citizens work together, Pakistan can go from just getting by to being stable, and then to long-term growth. Central bank’s verified reports on national savings, investments, and GDP. State Bank of Pakistan – Economic Data.
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