KARACHI: Private sector participation in investment activities with bank money has been declining and it came down to almost zero in the fiscal year 2013.
For the last 15 months, private sector credit off-take is negative, which experts said is the worst sign for economy.
How long the private sector will remain out of the banking system, no one has a ready answer. Bankers say there are no signs of improvement.
At the end of fiscal year 2013, private sector borrowing was minus Rs19bn while at the end of first quarter of fiscal year 2014, it was minus Rs23bn. This trend showed that there was no interest from the private sector in borrowing from commercial banks.
However, at the end of FY-12, private sector borrowings were to the tune of Rs235bn.
Experts say Pakistan’s economy has been in stalemate for five years and private sector participation in investment activities has been declining. Even the government of PM Nawaz Sharif has, so far, failed to energise the private sector.
Internews
