Growth in advances coupled with gradually rising interest rates has provided a unique opportunity for banks to generate unprecedented profits and redeployment of these funds in the banking and economic system has helped strengthen banks’ balance sheets and continue to meet the growing economic requirements, respectively.
After having achieved high economic growth, the key question posed to the Pakistani economic-policy makers is how sustainable is this high economic growth path? Some even contest that the economy is showing signs of overheating. This debate is triggered by few emerging trends which are typically observed when economies are set to achieve new heights of growth.