July 22, 2020 (MLN): The non-government sector borrowed a net sum of Rs. 295.2 billion during the year ended June 30, 2020, which brings the cumulative net borrowing for the fiscal year FY2020 to Rs. 8.36 trillion.
According to the data released by the State Bank of Pakistan, the additional borrowing as of prior year was recorded at Rs.1.03 trillion, which had resulted in a cumulative borrowing of Rs. 8.07 trillion as of June 30, 2019.
This translates into a decline of 72% in additional sum borrowed, and an increase of 3.7% in cumulative borrowing as of the same date.
The non-government sector is divided into three broad categories namely, the Private Sector, the Public Sector Enterprises, and NBFI. Commercial banks are the main source of financing for the private sector, including conventional banks, Islamic banks, and Islamic branches of conventional banks.
During the fiscal year 2020, the private sector borrowed a net sum of Rs.196.4 billion, the PSE's borrowed Rs.96.3 billion, and NBFI borrowed Rs. 2.56 billion.
As we disintegrate the inflows and outflows within the private sector, we see that Conventional Banks lent a sum of Rs.29.2 billion, Islamic Banks lent Rs.33.37 billion and lastly, the Islamic branches of Conventional Banks lent Rs.133.71 billion.
