Pakistan, March 9 -- The Ferozepur Road Industrial Association (FRIA) Chairman Shahbaz Aslam has observed that banks' credit to the private sector has declined to 8.4 percent in fiscal year of 2024, which is almost half the level seen in 2004. He said that the country's bank deposit and private-sector credit-to-GDP ratios have also remained among the lowest compared to the regional countries.
He appealed the central bank to persuade the commercial banks to diversify their lending beyond the government sector, stressing that no country can achieve sustainable economic growth with low levels of private credit.
FRIA Chairman said that Pakistan's banks allocate around 75 percent of their lending to established sectors, while only 5 percent go...