Bank lending to the private sector has risen by 43% year over year, showing that banks are committed to helping the economy recover and expand.
Private sector bank borrowing and financing rose to Rs. 357.2 billion in the first eight months of this fiscal year, up from Rs.249.6 billion the previous year, according to the State Bank of Pakistan (SBP).
Companies are using investment to complete short- and long-term ventures, while some firms are borrowing to revive themselves, as shown by the rise in private sector borrowing from banks.
Last year, the SBP lowered the policy rate from 13.25 percent to 7% to allow businesses to access bank financing, which had been disrupted by COVID-19 and the protective lockdown that came with it.
Source: Startup Pakistan
