Business
February 14, 2021
KARACHI: Construction sector borrowed Rs88 billion from banking institutions during the first half of the current fiscal year of 2020/21, showing 44 percent growth over the preceding same period, as the tax incentives and lower interest rate encouraged participation in real estate, analysts said on Saturday.
Companies attached to residential sector borrowed Rs41 billion in the six months ended December 31, 2020 compared to Rs29 billion, showing 41 percent growth, the analysts said, citing the central bank’s data. Borrowing for non-residential sector showed a rise of 51 percent to Rs47 billion.
Topline Securities Deputy Head of Research Shankar Talreja said the borrowing of the construction sector is likely to gain more momentum going forward due to increase in economic activity and subsidised markup scheme of the State Bank of Pakistan (SBP).