Banking Spread in Pakistan is concerning and State Bank of Pakistan must take immediate action.

1. Rise of Banking
World Bank Report 2012
Bangladesh 1.3%
China 3%
Japan 0.9%
Malaysia 1.8%
Pakistan 6%
Sri Lanka 4.6%
About 60% deposits of businessmen
are lying in current accounts. High
banking spread also prevents
businesses from investing in new
plant and technology up-gradation
to produce world standards quality
products. Thus high interest rates
coupled with high markup rates
retard the growth of SMEs.
State Bank of Pakistan must play its
role for narrowing down the high
interest rate spread, which will
produce healthy results for
economy as it will encourage
savings, promote investment,
reduce credit cost, bring down
production cost leading to better
growth of business activities and
availability of cheap products to the
end consumers.
Sajid Imtiaz: Expert Member CDKN, Honorary Member Pakistan Society of Criminology