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Byline: RECORDER REPORT
Credit to the private sector witnessed a steep decline in 2008-09 from Rs 408 billion to Rs 19 billion due to crowding out, caused by an increase in government borrowing from banks and non-banks. Additionally, sustained high interest rates, power outages and the law and order situation impacted on the private sector credit, resulting in decline in productivity, analysts told Business Recorder on Friday.
Former finance minister Sartaj Aziz said that the private sector was not ready to take credit from banks at the current interest rate mainly because it was simply not affordable.
However there was some demand for credit for commodity …