KP's shares dropped drastically against Punjab, Sindh, Islamabad.
He made this disclosure while presenting Banking Sector perspective of a research finding of KPCCI on Economic situation of Khyber Pakhtunkhwa here at a press conference.
Afan Aziz said according to research finding based on annual report of State Bank of Pakistan (SBP), the share in growth of bank advances during the last one decade from year 2001 to 2011 shows huge disparity as Punjab got 49 percent, Sind 41 percent and KP only 0.96 percent, even less than one percent.
In the last ten years, the total amount of bank advances received by Punjab is 1193.55 billion, Sindh 997.49 billion and KP 22.97 billion, Balochistan 2.02 billion, Islamabad 182.16 billion and FATA 0.18 Billion.
If we analyze the ratio of advances to deposit we see that in the past ten years Punjab's advances grew by Rs. 1193 billion whereas its deposits increased by Rs. 1884 billion, utilizing 63 percent, Sind advances grew by Rs. 997 billion whereas its deposits increased by Rs. 1517, utilizing 65 percent of its deposit.
While the ratio of KP is staggeringly low which only got back only 8 percent of its own deposit as the province deposited Rs. 275.83 billion and got advances of Rs. 22.97 percent in the last one decade.
"This is a startling revelation for a province already struggling with bruises of war on terror, slow economic growth, low business confidence, less investment, flight of capital and difficult economic environment, " Afan remarked. These revelations, he went on to say, necessitate the urgent need to develop policy response to these deteriorating trends in access to finance for KP Province.
Afan said industry and trading community has been immediate victim of this highly skewed banking practice where the province is being used to deposit mobilizing base but advances are not forthcoming on one pretext or the other.
The analysis made by study report reflects a trend of concentration of bank advances to primarily three provinces or regions of the country i.e. Punjab, Sind and Islamabad. All other provinces and regions have lost ground in bank advances during the year 2001-2011. This analysis also reveals that 98.88 percent growth in bank advances during the last one decade was shared among these three provinces or regions leaving a paltry 1.12 percent for other provinces to share among themselves.
President KPCCI also disclosed that in private sector, KP had a market share of 2.55 percent in bank advances to private sector in 2001 which gradually declined to 1.29 percent by 2011. The share of FATA also declined from already meagre 0.02 percent in 2001 to 0.01 percent in 2011. However, share of Islamabad jumped from 4.74 percent in 2001 to 7.91 percent by 2011.
Punjab got the lion's share in advances to private sector which is 51 percent, while Sind got 38.87 percent.
Afan observed that this evidence of declining access to finance to KP as province has been a point of concern and government should take notice of this practice.
He also demanded of the government to take action for deleting wording like 'New industry and Extension in Industry' in order of federal government banning issuance of new gas connections to industry in KP.The ban he said is going to expire in October 2012 and efforts are underway to extend it for next year.
He said KPCCI is also contemplating to knock the doors of High Court or Supreme Court on ban on issunace of new gas connection for new industry in KP.
He said the KPCCI has disclosed through its research findings that KP
is meted out step motherly treatment in energy and banking sectors and now its the duty of provincial government to take up the matter with relevant quarters for ending this disparity which is pushing the provinces to backwardness. 153
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|Publication:||Balochistan Times (Baluchistan Province, Pakistan)|
|Date:||Sep 4, 2012|
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