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Credit to private sector slows down


Credit to private sector slows down
Banks continue to focus on investment in govt debt securities
KARACHI:
Bank credit to the private sector for setting up new industrial units has continued to slow down as financial institutions have partially deviated from their principal objective of supporting industrialisation and shifted their focus to more investment in risk-free government debt securities like T-bills and Pakistan Investment Bonds (PIBs).
Banks’ strategy to remain in profit through maximum investment in government debt securities rather than taking calculated risks to finance new business ideas has hurt industrialisation, which is a good source of providing job opportunities in the country. Advances to the private sector grew 4% to Rs8.59 trillion by the end of March 2021 compared to Rs8.26 trillion in the same month of previous year, according to the central bank and Topline Research. ....

Naveda Khan , Shahid Hasan Siddiqui , International Monetary Fund , Topline Research , Pakistan Investment Bonds , State Bank , ஷாஹித் ஹசன் ஸிடீக்வி , சர்வதேச பண நிதி , மேல் வரி ஆராய்ச்சி , பாக்கிஸ்தான் முதலீடு பத்திரங்கள் , நிலை வங்கி ,