Pakistan, March 2 -- The All Pakistan Business Forum (APBF) has asked the banks to boost financial deepening and diversify beyond the government sector, stressing that no country can achieve sustainable economic growth with low levels of private credit.

APBF President Syed Maaz Mahmood said that Pakistan's banks allocate around 75 percent of their lending to established sectors, while only 5 percent goes to small and medium enterprises (SME). This imbalance highlights the need for banks to reassess their strategies, he said. With a more stable economy, he hoped that the government's borrowing would be curtailed and the banking sector could look towards increasing credit to the private sector, particularly the SMEs and agriculture sector....