Commercial bank profits are rising in Pakistan on bigger volumes, enlarging transactions and growing businesses.
Overall deposits of all commercial banks stood at Rs10,726.66 billion on March 3 according to the latest report by the State Bank of Pakistan (SBP), while deposits and other accounts of specialised banks and the central bank stood at Rs71.07 billion. Total assets of banks were at Rs14,941.67 billion, according to a report by Khaleej Times.
Lending by banks rose, too, the SBP said. The gross advances of all scheduled banks stood at Rs5,502.81 billion in the first quarter of the fiscal year 2017. Lending by banks in the same period was Rs4,835.19 billion, which was 13.8 per cent higher than the same period of the fiscal year 2016.
Borrowing by all scheduled banks rose by 2.8 per cent to Rs2,025.84 billion in the fiscal year 2017, compared to Rs1,990.44 billion in the fiscal year 2016.
The central bank reports a much-awaited rise to Rs7,525.10 billion in investments by banks in the fiscal year 2017, up from Rs7,039.33 billion in the past year. It shows a rise of 6.9 per cent.
The approved foreign exchange reserves with banks were Rs996.45 billion in March, compared to Rs923.4 billion, a year ago, which is higher by 7.9 per cent.
All these statistics of the banking sector confirm a definite growth in all these sectors.
The report said that the economy is moving up at a good pace as stated by Finance Minister Ishaq Dar.
During three-and-a-half years of the government of pro-business Prime Minister Nawaz Sharif, the index has moved from around 35,000 to the current level – nearly a whopping one-third up.
The improving health of the Pakistani economy is also testified by international rating agencies and global stock market operators who have described the Pakistan Stock Exchange as “one of the top 10 emerging markets worldwide”.
Besides other big foreign businessmen and financiers flocking to buy PSX shares, there is a growing interest of the investors from the UAE and China – part of which is related to the ongoing implementation of the $56 billion China-Pakistan Economic Corridor (CPEC).
