ISLAMABAD: The banks’ credit to the private sector jumped 12% to a total of Rs6.82 trillion in the previous fiscal year (FY21), as a number of sectors- including those which got government’s support and those that played a key role in turning the economy around- borrowed more during the year.
The credit increased by Rs741 billion from FY20’s level of Rs6.08 trillion, according to the data reported by Pakistan’s central bank which was compiled by The Express Tribune.
According to the data, sectors that prominently increased their borrowing from banks included construction and allied industries such as cement and steel, pharmaceutical manufacturers, textiles manufacturers, power generation, transmission and distribution sector and telecommunication.
Moreover, borrowing from software manufacturers, manufacturers of food products, fertiliser and pesticides manufacturers, tyres and tubes manufacturers, refrigerators and motorcycles manufacturers and automobile parts makers spiked as well in the period under review.
Besides, sectors pertaining to mining of coal and lignite, retail sale of automotive fuel in specialised stores and pumps, manufacturers of vegetable and animal oil and fats and personal loan like car and housing finance recorded significant rise in loans in the past one year.
The outstanding banks borrowing by the entire documented manufacturing sector rose to Rs3.55 trillion in FY21 compared to Rs3.12 trillion on June 30, 2020, according to State Bank of Pakistan’s (SBP) data.