47. Pakistan Economic Survey 2011-12 - Consultancy Services in ...

Pakistan Economic Survey 2011-12March 2011. However, the stocks reached Rs2474.7 billion in March 2011-12 against the endJune stock of Rs 2431.8 billion, reflecting anincrease of only 1.8 percent. All of the majorsectors, excluding agriculture, registered a declinein credit when compared to last year. Particularly,loans to textile sector are significantly lower thanlast year. The ample profitability of textile sectorin 2010-11, along with subsequent decline incotton prices in 2011-12 explains the relativelylower requirement for credit during July - May2012.The manufacturing sector advanced over 100percent (Rs 65.0 billion) of total PSC, followed bytextiles (38.2 percent), and agriculture (24.5percent). On the other hand, credit to trade andconstruction declined by 14 percent, followed byelectricity, gas and water supply (4.5 percent), andthen commerce and trade (2 percent).In agriculture, overall credit disbursement by fivemajor commercial banks 1 stood at Rs. 107.6 billionin July—March 2012 as compared to Rs. 93.3billion in July—March 2011 posting an increase ofRs. 14.4 billion or 15.4 percent. Total creditdisbursement to agriculture sector during July-March 2012 surged by 17 percent on year to yearbasis to Rs. 197.4 billion against totaldisbursement of Rs. 168.7 billion in the sameperiod of fiscal year 2010-11.Net decline in consumer financing during July -March 2012 stood at Rs8.5 billion as compared tothe decline of Rs 17.4 billion in the comparableperiod of 2010-11 , thereby registered a decline of3.9 percent as compared to the decline of 7.1percent during the period under review.Table 5.4: Consumer FinancingRs. BillionDescriptionJuly-March Growth (%)2010-11 2011-12 2010-11 2011-12Consumer Financing -17.40 -8.50 -7.10 -3.901) For house building -5.40 -5.20 -10.00 -10.902) For transport i.e. purchase of car -10.60 -5.60 -16.40 -11.003) Credit cards -3.40 -1.70 -12.20 -7.004) Consumers durable 0.03 0.10 13.90 37.105) Personal loans 0.40 2.70 0.40 3.006) Other 1.60 1.20 55.70 27.00Source: State Bank of PakistanLoans for consumer durables witnessed a netexpansion of 37.1 percent during July 2011 -March 2012 against 13.9 percent in the sameperiod last year. However, auto loans, mortgages,credit cards and personal loans have consistentlybeen on the decline since January 2008 on accountof multiple factors (e.g. fragile economicconditions, rising cost of credit and increasingdefault). The stock of consumer finance reduced toRs. 209.1billion in March 2012 from its peak ofRs. 371.3 billion exactly four years earlier.Each category within the consumer financesegment has registered a persistent increase in theloan infection ratio for the last three years. Thisincrease has been a combination of rising NPLsand declining credit to each category with theexception of consumer durables.Monetary AssetsThe component of monetary assets (M2) include:currency in circulation, demand deposit, timedeposits (excluding IMF A/C, counterpart), andresident’s foreign currency.1 Allied Bank, Habib Bank Limited, MCB Bank Limited, National Bank of Pakistan and United Bank Limited70