Private sector loans plummet by over six-times: SBP

April 29, 2009

Private sector loans during the current fiscal year plummeted by over six-times depicting the slowdown impacts in country’s economy more visible. State Bank of Pakistan (SBP) released figures said that the volume of new loans to private sector during July 2008 to April 18, 2009 amounted to Rs55.43 billion as against Rs359 billion during the same period previous year, which showed private sector’s lack of interests in taking loans. The government obtained Rs103 billion loans from the Central Bank and Rs137 billion from commercial banks in a bid to meet the budget deficits. Currency circulation in the economy increased by Rs194 billion, but the bank accounts’ amounts decreased by Rs74 billion, which showed the expansion of money remaining at 1.62 percent.