Lahore: The All Pakistan Business Forum has urged the central bank to review its policies to facilitate private sector, as the credit off take in fiscal year 2018-19 has fallen to Rs607.5 billion against Rs618.2 billion of last year on the back of high key policy rates, which was raised from 6.5 percent to13.25 percent in just one year. Moreover, the government borrowing from the SBP also increased by record highs during the period, increasing inflationary pressures on the economy.
APBF President Syed Maaz Mahmood observed that private sector has found no space to borrow from financial institutions, as banks are preferring to park their money in risk-free government securities in huge sums. He said that banking money’s flow has now directed towards the government papers, which will definitely hit the economic growth adversely, affecting the investment landscape of the country too.
