KARACHI - The growth in private sector credit off-take has increased by 35.57 per cent from July 2007 to June 2008. The private sector credit disbursement from the scheduled banks has soared by 104 billion rupees in the fiscal year 2007-08. The domestic banks have disbursed Rs 395 billion in the period from July 1, 2007 to June 21, 2008 against Rs 291 billion showing that the private sector credit demand grew record higher than the last period under review. Rise in working capital requirements due to higher input costs, the need for bridge financing to settle price differential claims of OMCs and IPPs and the higher fixed investment (visible in a few sectors, e.g. textile, refineries and power) were the key factors contributed to this high acceleration in private sector credit growth in the respective period of FY08. The SBP latest profile of monetary assets indicate that the net government sector borrowing during said period stood at Rs 480.1billion against Rs 134.7 billion past year while, the government borrowing for budgetary support went up to 453.3 billion from 143.8 billion last year.    However, the GoP borrowed Rs 629.3 billion during last fiscal when compared to Rs -35.819 million last year from SBP.   From July 01, 2007 to June 21, 2008 government budget borrowings from scheduled banks amounted to Rs -175.652 million against 179.694 million in the corresponding period of FY07-08.    According to the SBP monetary aggregates for the reviewed period of FY07-08, the aggregate M2 growths declined by 10.39 percent lower than FY08 official target of 13.7 percent.    It is important to mention here that the State Bank had projected 17 to 19 percent M2 growth for FY08.    According to the monetary survey as on 21st June FY08, Net Foreign Assets of banking system showed negative growth. The contraction in NFA of banking system has been the result of widening trade deficit and lower net receipts of external financing. On the other hand, Net Domestic Assets stood at Rs 823.2 billion as on June, 21, 2008 against Rs 376.6 billion in June 21, 2007 witnessing sharp acceleration in NDA growth of the banking system. The growth in NDA flows of the banking system including net government sector borrowing, credit to non-government and other sector during July-24 May FY08 increased by 23.41 percent. The private sector credit, which had been growing at a slower pace till January 2008 compared to previous year, gathered momentum thereafter.