Over FY00-06, Pakistan has attained an average economic growth of over 5% which, among other factors, has been helped by the growth in overall credit in the range of 16.1% per annum. Private sector credit growth has actually far exceeded these average growth rates in recent years (average annual growth observed in the range of 18.3%).
Bank credit has grown rapidly, serviced diverse needs and ventured into new areas such as consumer financing, which has stimulated the demand for durables. However, over half of the credit still flows towards the large corporate sector and in terms of tenor, bulk of the credit is for less than 1-2 years.