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Article PresentationPrivate Sector
Borrowings
By
Mifrah Yusu
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Press
KARACHI, ov !" !#$% : PRIVATE sector borrowing is picking up
thanksto the rising output of large scale industries, increase in
domesticwholesale businesses, revival of personal loans, and some
epansion ineternal sector trade, according to !ust"released #$P
statistics%
KARACHI, &ct $! !#$%: Private sector participation in
investmentactivities with bank mone& has been declining and it
came down to almost'ero in the (scal &ear )*+%
KARACHI, 'e( !" !#$%: The net government borrowing from
domesticsources stood at -) percent of total credit etension during
the last (scal&ear, obstructing the implementation on
monetar& polic&% This was pointed
out b& the #$P during a presentation to the #enate.s
#tanding /ommitteeon 0inance%
KARACHI, &ct ) !#$!: After a cumulative %2 per cent cut in
the polic&interest rate since August )*++, both lending and
deposit rates havedropped, but failed to attract the private sector
for borrowing, sa&s a latest
report of the #tate $ank%
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!#$$*$!
3+ ")*++ 3) ")*++ 3," )*++ 34" )*++ 3+ ")*+) 3) ")*+) 3," )*+)
34" )*+)
+,%45+,%2) +,%24
+,%+6 ++%-+ ++%-) ++%-2
+*%+7
Historical KIB&R Rate
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!#$!*$%
3+ ")*+) 3) ")*+) 3," )*+) 34" )*+) 3+ ")*+, 3) ")*+, 3," )*+,
34" )*+,
++%-+ ++%-) ++%-2
+*%+7
-%)7-%2) -%*, +,--
Historical KIB&R Rate
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'act sheet
8et bank 9isbursements PR 6+ billion 3+"
)*+
76; more then same period last &ear
All investments in the private sector
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Mar.et Senti/ents
>=arge"scale manufacturing is growingfaster on the back of
rising domestic
sales? people are seeking more personalloans, and eternal trade
is epanding@
>hat is even more important is that theborrowing is not
concentrated in sectors that
need seasonal bank (nancing at this time ofthe &ear, like
cotton, tetiles and rice milling
etc@
Larger-than-expected output is keeping cotton
prices from accelerating. And that, along with
an increase in export demand, is creating room
for textile mills to obtain a bit costlier working
capital
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'actors Contri(uting to0rowth
0avorable Interest Rates
Increased
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Sectors 1ea2ing 3he BorrowingRace
+% Tetile
)% 0ood
% Petroleum
4% /ement
2% 0ertili'er
5% /hemicals6% Electronics
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Thank You
