KARACHI: Credit to the private sector was at a three-year high in the first five months of the current fiscal year, but bankers said the money was not intended for investment.

The latest data from the State Bank, issued on Monday, revealed a sudden jump in private sector credit off-take, which crossed Rs1 trillion, up from just Rs41bn in the same period of the last fiscal year.

The slow growth in trade and industry has been a primary reason for the private sector’s poor creditworthiness, as data over the last two years suggested. The credit to the private sector in FY25 was Rs1,081bn, and in FY24 it was Rs513bn. During FY23, it was just Rs46bn.

The credit to the private sector........

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