Risk premium on lending (lending rate minus treasury bill rate, %) in Pakistan
Pakistan: Risk premium on lending (lending rate minus treasury bill rate, %) was 1.1% in 2021. ◆ Volatile
Risk premium on lending in Pakistan, 2004–2021
Source: International Financial Statistics database, International Monetary Fund (IMF). Measured in lending rate minus treasury bill rate, %.
Analysis
Pakistan recorded 1.1% for risk premium on lending in 2021.
That represents a change of down 48.8% on the previous year and down 17.2% over ten years.
Over the whole period, risk premium on lending in Pakistan peaked at 4.8% in 2004 and was at its lowest, -1.1%, in 2019.
Pakistan ranks 76th of 86 countries on this measure, in the bottom quarter.
The series is highly variable year to year, so single readings are best treated with caution.
Risk premium on lending (lending rate minus treasury bill rate, %) in Pakistan, year by year
| Year | lending rate minus treasury bill rate, % | Change |
|---|---|---|
| 2004 | 4.8% | — |
| 2005 | 1.9% | -60.4% |
| 2006 | 2.4% | +29.5% |
| 2007 | 2.8% | +13.6% |
| 2008 | 1.6% | -43.5% |
| 2009 | 2.0% | +28.6% |
| 2010 | 1.5% | -25.9% |
| 2011 | 1.3% | -12.8% |
| 2012 | 2.5% | +93.6% |
| 2013 | 2.7% | +5.5% |
| 2014 | 1.8% | -30.9% |
| 2015 | 3.0% | +65.1% |
| 2016 | 2.8% | -8.9% |
| 2017 | 2.2% | -20.1% |
| 2019 | -1.1% | -147.9% |
| 2020 | 2.1% | -299.3% |
| 2021 | 1.1% | -48.8% |
Pakistan compared with similar countries
- Pakistan's 1.1% is below the median for lower middle income countries, which is 3.5%, 31% of the median. (20 countries reporting)
- Pakistan's 1.1% is below the median for Middle East, North Africa, Afghanistan & Pakistan, which is 4.1%, 26% of the median. (9 countries reporting)
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 2000s | 2.6% | 1.6% | 4.8% | 6 |
| 2010s | 1.9% | -1.1% | 3.0% | 9 |
| 2020s | 1.6% | 1.1% | 2.1% | 2 |
Countries ranked near Pakistan
More financial sector data for Pakistan
- Reserve position in the IMF, US dollar, annual growth rate 5.01 % change on previous year (2025)
- Reserve position in the IMF, US dollar, per unit of GDP 0 units per US$ of GDP (2025)
- Reserve position in the IMF, US dollar, per capita 0.0006 units per person (2025)
- Reserve position in the IMF, SDR, annual growth rate 0 % change on previous year (2025)
- Reserve position in the IMF, SDR, per unit of GDP 0 units per US$ of GDP (2025)
- Reserve position in the IMF, SDR, per capita 0.0005 units per person (2025)
- Reserve tranche position, US dollar, annual growth rate 5.01 % change on previous year (2025)
- Reserve tranche position, US dollar, per unit of GDP 0 units per US$ of GDP (2025)
- Reserve tranche position, US dollar, per capita 0.0006 units per person (2025)
- Reserve tranche position, SDR, annual growth rate 0 % change on previous year (2025)
Frequently asked questions
- What is risk premium on lending in Pakistan?
- Risk premium on lending in Pakistan was 1.1% in 2021, according to International Financial Statistics database, International Monetary Fund (IMF).
- What is the highest risk premium on lending recorded in Pakistan?
- The highest recorded value was 4.8% in 2004.
- What is the lowest risk premium on lending recorded in Pakistan?
- The lowest recorded value was -1.1% in 2019.
- How does Pakistan rank for risk premium on lending?
- Pakistan ranks 76th out of 86 countries with data for 2021.
- Is risk premium on lending rising or falling in Pakistan?
- Over the last ten years it is down 17.2%. The long-run trend across the full record is volatile.
- Where does this Pakistan data come from?
- The figures come from International Financial Statistics database, International Monetary Fund (IMF), published as part of Risk premium on lending (lending rate minus treasury bill rate, %). Statizoid updates them automatically from the source API.
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About this data
Risk premium on lending is the interest rate charged by banks on loans to private sector customers minus the "risk free" treasury bill interest rate at which short-term government securities are issued or traded in the market. In some countries this spread may be negative, indicating that the market considers its best corporate clients to be lower risk than the government. The terms and conditions attached to lending rates differ by country, however, limiting their comparability.