Bank loans to private sector jump by 3.6% in 2MFY25

Bank loans to the private sector increased by 3.6 percent in August year-on-year, indicating strong participation of private businesses in the country’s production.

The first two months (July-August) of fiscal year 2024-25 appeared better for the country as growth positively increased in the private sector borrowing from banks. However, the current year followed an upward trend despite the narrow opportunity to do business.

According to the statistics issued by the State Bank of Pakistan, the private sector borrowed Rs8.3 trillion at the beginning of FY25, which was 3.6 percent higher than the same period last year.

The jump showed that the private sector was expanding in growth or new projects were started.

According to the statistics of the central bank, the borrowing of the private sector in August 2023 stood at Rs7.9 trillion.

Meanwhile, the volume of vehicle financing shrunk by 18.3 percent to Rs2.27 billion in August compared to Rs2.78 billion in the corresponding year.

Apart from this, the farmers have written to the SBP governor to extend the deadline to December 31, 2024, for returning the loans. It is set to be owed on September 30, 2024.

They argued that the farmer was restricted to returning the loan within 15 days after selling sugar canes to the mill, and it was impossible to owe the debt until the deadline.