Private sector borrowing clocks in at Rs7.6tr in 7MFY22

March 10, 2022 (MLN): Private Sector borrowing during the Jul-Jan FY22 period reached Rs7.6 trillion against Rs6.48tr in the same period of the corresponding year, up by 17.28% YoY, the Central Bank data showed.

Going by the data, the manufacturing sector availed the highest credit share which amounted to Rs4.18tr, against credit worth Rs3.37tr borrowed during 7MFY21, showing a surge of 24% YoY.

The expansion in private sector credit especially in the manufacturing sector ensures persistence in economic and business activities, which bodes well to achieve the targeted growth.

Within manufacturing, textile sector loans observed an expansion of over Rs300bn to clock in at Rs1.42tr in the review period.

Meanwhile, the credit offtake from the agriculture sector stood at Rs304 billion in 7MFY22, showing an increase of 7.19% YoY compared to the same period of last fiscal year.

In addition, the higher borrowings arrive from construction, transport & storage, information and communication which stood at Rs170.15bn, Rs123.87bn, and Rs198.64bn in 7MFY22.

Furthermore, wholesale and retail trade, repair of motor vehicles and motorcycles and real estate activities availed notable credit during the review period.

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