Business
December 16, 2020
KARACHI: Private sector paid off Rs14.979 billion to banks in over five months of this fiscal year as businesses with ample liquidity on hand, owing to pandemic-led contraction, opted to ease the debt burden and hold off new borrowing, latest numbers showed on Tuesday.
According to State Bank of Pakistan (SBP), corporate entities retired this amount during July 1, 2020 to December 4, 2020, while the loan amount cleared in the same period of the last fiscal year was Rs79.22 billion.
The credit offtake usually gains momentum in the second quarter of each year. However, the corporations still look unwilling to make fresh investments, despite a desirable policy rate in place. This trend indicates the businesses remain uncertain about the economic recovery prospects of the country due to the second wave of the virus.