ISLAMABAD, Sept. 19 (Xinhua) -- The macroeconomic environment of Pakistan remained challenging during the first half of the current year, the State Bank of Pakistan (SBP) said in the mid-year performance review of the banking sector for 2023.
The review covers the performance and soundness of Pakistan's banking sector from January to June 2023 (H1CY23), the SBP said in a statement Monday evening.
The domestic financial conditions tightened while the operating environment remained under stress due to elevated inflation and prolonged uncertainty, the review said.
Nonetheless, the banking sector's balance sheet expanded by 14 percent during H1CY23, it added.
The report said the expansion in asset base was mainly driven by investments in government securities, noting that besides a strong inflow of deposits, banks' reliance on borrowings remained noticeable during the period.
The review also noted that advances in the banking sector recorded a muted growth during H1CY23 with private sector advances contracted while the public sector availed additional financing mainly for commodity finance operations, according to the SBP. ■
