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Summary Gov. State Bank says govt. is taking loans from commercial banks, owing to a lack of private loans.
Speaking to a seminar in Lahore, Governor State Bank Shahid Hafeez Kardar said the government has been taking out loans exclusively from commercial banks since the month of September in 2010.He said the direct result of this action was the increasing unavailability of loans to the private sector. He also said the private sector was already suffering from a shortage of energy supply, both electricity and gas, and a lack of private loans would only exacerbate the issue.He mentioned that the most transactions were being conducted either in low-tax businesses or establishments that were tax-exempt.
