One of the most recent positive development is the entry of largest Chinese bank ICBC in Pakistan that started operations earlier this year. Since capital of a bank provides the buffer against unexpected losses, it is essential for any bank to have adequate capital to survive the ups and downs of a business cycle and to bear exogenous shocks successfully.
Production in the third quarter is expected to remain mostly unchanged from the second quarter. This is because a minor production cutback is expected in the transportation machinery industry where inventories have accumulated, while production will continue a steady increase in the electrical machinery industry. Inventories are at appropriate levels on the whole, except for the transportation machinery industry.