Pakistan, Feb. 16 -- The All Pakistan Business Forum (APBF) has stated that the government has been using taxpayers' money to pay unprecedented returns to the banks, urging the central bank to review its policies to facilitate the private sector, as the massive investment in government papers leave little room for lending to the private sector.
The APBF President Syed Maaz Mahmood suggested that banking in Pakistan could not stimulate the economy. Instead, the banks have been making money by investing in government papers, and the government retires its debt with taxpayer's money. The government has always been quick to impose new taxes for higher revenue collection, but there is no check on spending.
He said that the banks' investments i...