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Credit to private sector up by 37% to Rs212.34b

Credit to private sector up by 37% to Rs212.34b

KARACHI: The State Bank of Pakistan (SBP) has reported that the credit to private sector surged by 37 per cent to Rs212.34 billion by the week ended December 25, 2015 as compared to Rs155.8 billion in the corresponding week last year.

According to statistics issued by the central bank, the borrowing by the private sector also registered 26.47 percent growth as compared to Rs167.93 billion during the last week ended December 18. Analysts said that lower interest rates and political stability helped improved business activities.

The SBP in its annual review had already forecast that the credit to private sector would gather pace due to improved investors’ confidence amid successful IMF review and improvement in the law and order situation. The SBP also forecast that the monetary easing and marginal improvement in the energy supplies would improve the demand for loans.

According to the latest weekly monetary aggregates, the borrowing for budgetary support by the government posted deceleration in case of the SBP. However, in the case of commercial banks, the federal government borrowed Rs654 billion as compared to Rs641 billion.