Pakistan

Why is Pakistan's easing monetary policy not driving credit appetite?

The private sector is not asking for new loans and is more interested in retiring debt

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Pakistan's central bank has adopted an expansionary monetary stance and has been steadily reducing the interest rate since June 10.

However, it has not led to an increase in credit appetite. According to State Bank of Pakistan data, during the first two months of the current fiscal year, it was negative PKR 309 billion. This indicates that the private sector is not asking for new loans and is more interested in retiring debt.

Nuktareached out to industry leaders to ask why the easing monetary policy has not led to increased credit appetite.

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