For Loans Government Pressure On Banking Sector Expected to up

Karachi (Sunday, October 26, 2014): IMF (Extend fund facility) late in the fourth installment of loans, reduction in revenue collection, flood recovery and the ongoing war on terror, the pressure from rising costs of government pressure on the banking sector loans fear. During the year, there is a noticeable reduction in government borrowing.

Until the first week of October 2014, the volume of government debt has declined 49 percent year-on-year, while the value of loans for budget support from 44 per cent to Rs 165 billion was recorded.

Loans for the government’s central bank depends on reducing the inflation pressure slightly decreased, but the central bank rather than from commercial banks expensive to borrow from the government’s financing cost is rising and banks 73 billion to have been borrowed.

According to the experts for budget support loans in the coming days is expected to increase pressure.

Delay in installment loans from the IMF, international donors no attention to the Pakistani economy, the decline in revenue collection with the victims of terrorism, war and maintenance costs due to increased government budget deficit It is also expected to meet the government’s reliance on the banking system will increase.

According to data of the State Bank since the beginning of the current fiscal year’s net domestic banks East (NDA) to the lack of monetary expansion, which has been reduced.