73% drop in bank advances to private sector indicates economic slowdown

 

73% drop in bank advances to private sector indicates economic slowdown

Bank advances in Pakistan to the private sector decreased by 73 per cent during the first 8 months of the current fiscal year.

The downward trend indicates economic slowdown leading to massive retrenchments in key industrial sectors.

The World Bank and IMF do not expect Pakistan to achieve an economic growth rate of even 2pc in FY23.

Data of State Bank of Pakistan (SBP) shows that the credit taken by private sector was just Rs248bn in the first nine months (July 1, 2022 to March 10) against Rs911bn in the same period of FY22. Pakistan achieved an economic growth rate of about 6pc in 2021-22.

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