Bank financing to the private sector has increased by 43% year over year, indicating that banks are committed to assisting the business sector in its recovery and expansion.
According to the State Bank of Pakistan (SBP), private sector bank borrowing and funding increased to Rs.357.2 billion in the first eight months of this fiscal year, up from Rs. 249.6 billion the previous year.
The increase in private sector borrowing from banks revealed that companies are using investment to fulfil short- and long-term projects, while some businesses are borrowing to revive themselves.
Last year, the SBP cut the policy rate from 13.25 percent to 7% to enable companies to use bank funding, which had been hampered by COVID-19 and the preventive lockdown that accompanied it.
