Pakistan Private Sector Retires Rs393bn Debt, Investment Stalls

From July 1 to Aug 15, the private sector's net debt retirement was Rs393.4 billion, exceeding last year's Rs232bn for the same period. Banks are increasingly parking liquidity in risk-free government bonds rather than extending loans, while high interest rates further deter private investment. SBP Governor Jameel Ahmad emphasized that stabilization alone is insufficient for sustainable growth, urging banks to reorient their models. This continued economic stagnation and lack of private sector investment could exert long-term pressure on the Pakistani Rupee, potentially supporting local gold prices.

بحوالہ / Source: www.dawn.com