Loans to the private sector businesses rises by 3.5% in June: SBP

According to the State Bank of Pakistan, loans to the private sector businesses increased by 3.53% on a month on month basis in June 2018 when total outstanding loans were recorded at Rs 4,778 billion, compared to Rs 4,615 billion in the month before (May 2018).

Of these, only Rs 393 billion was provided to Small and Medium Enterprises.

The bulk of the loans to the private sector businesses were oriented towards the short term, such as those for working capital needs, and accounted for close to Rs 2159 billion of the loans in June, against Rs 2063 billion the previous month. Long-term loans, on the other hand, such as those for fixed investments summed up to close to Rs 1682 billion, compared to Rs 1662 billion in May.

Loans for export financing related issues summed up to about Rs 389 billion compared to Rs 387 billion in May while those for import financing came out at about Rs 302 billion compared to Rs 260 billion in May.

Loans for Bills purchased and discounted such as Inland Bills, Import Bills and Foreign Bills totaled about Rs 229.5 billion in June, against Rs 228.4 billion in the month before.

Majority of these loans were awarded to the manufacturing sector, which took a total of 59% of the loans offered to the private sector businesses.

The largest recipient of these loans was the textile sector (19%), followed by Food products and beverages at 16% of the total loans to the private sector businesses. Commerce and trade-related loans accounted for about 8% of the total loans while loans to the agriculture, hunting, and forestry sector summed up to about 6% of the total loans.