November 25, 2019: The private sector seems to have increased economic activities due to better economic conditions.
According to the latest data released by SBP on advances classified by borrowers, backs the aforesaid statement, the overall credit to government sector surged by 1.51% MoM to an accumulated amount of Rs 12.7 trillion in the month of October 2019 when compared to September 2019. Where net SBP advances to the government sector increased by 29% MoM, however, scheduled banks advances to government sector plunged by 17%MoM during October 2019.
As per SBP data, the credit to the private sector which includes SBP credit and Scheduled banks credit rose marginally by 0.16% to Rs7.79 trillion.
The scheduled bank advances to private sector surged by 0.15% MoM to an accumulated amount of Rs7.77 trillion as compared to the corresponding period of last month.
Under the category of credit to the private sector, the scheduled bank advances to private business stood at Rs5.12 trillion, up by merely 0.65% MoM when compared to the Rs5.08 trillion of September 2019.
Most of the demand for credit in the private businesses emanated from the Manufacturing sector, as a credit to this sector surged by 0.48% MoM to Rs3.09 trillion. This was followed by Electricity & Gas sector, as loans to this sector stood at Rs496 billion, depicting an increase of 0.7% MoM as compared to the last month.
Among the manufacturing sector, Textile manufacturing ranked first as financing to this sector reached to Rs 973 billion during the period under review, showing a growth of 5.11% MoM.
Additionally, loans to Trust funds and Non-profit organizations were recorded at Rs19.16 billion, down by 0.98% MoM, whereas, credit for personal consumption surged by 0.61% MoM to Rs684.6 billion.
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