Private Sector Borrowings from Pakistan’s Islamic Banks Witness Lower Declines Compared to Conventional Banks

Statistics provided by the State Bank of Pakistan (SBP) indicated that private sector borrowings from Islamic banks declined to PKR 52 billion during the first ten months of the current fiscal cycle (July 2019-April 2020), against PKR 79 billion in the same period of the previous fiscal cycle. Notably, Islamic banking windows of conventional banks experienced an increase in private sector borrowings to PKR 122.7 billion during the same period in the current fiscal cycle, compared to PKR 100 billion during the same period in the last fiscal year.

Meanwhile, private sector borrowings from conventional banks declined to PKR 122.6 billion in the first ten months of the current fiscal period compared to PKR 383.8 billion during the same period in the previous fiscal cycle.

Ac...