KARACHI: The private sector\u2019s contribution to the economy, if bank borrowing is taken as an indicator, has come down drastically over the last 18 months. Data recently issued by the State Bank of Pakistan (SBP) reveal that the sector was unable to stage a meaningful recovery during the first four months (July-October) of FY24. The data show a repeat of FY23 when the private sector\u2019s borrowing from banks plunged to Rs208 billion from Rs1,329.7bn in FY22. This massive drop in bank advances to the private sector changed the big picture as the economy contracted by 0.17 per cent in FY23 against a robust growth of 6.17pc in the preceding year. The caretaker government looks desperate to bring foreign investment but seems to have ignored the private sector. An unprecedented interest rate of 22pc with 29pc inflation does not allow trade and industry to take risks. This low participation of the private sector badly affected the growth rate, causing massive unemployment. MONITORING DESK<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI: The private sector\u2019s contribution to the economy, if bank borrowing is taken as an indicator, has come down drastically over the last 18 months. Data recently issued by the State Bank of Pakistan (SBP) reveal that the sector was unable to stage a meaningful recovery during the first four months (July-October) of FY24. The […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-372593","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n