KARACHI - Private sector commercial banks have disbursed Rs 35 billion during July-September 2008 out of total Rs 38 billion financing in infrastructure sectors. However, Public sector banks extended a meagre amount of Rs 3.5 billion in the top sectors of infrastructure, especially energy and telecom during first three months of current financial year. According to bank-wise outstanding share in development related financing, the market share of private sector banks rose from 78 percent to 85 percent from September 2007 to September 2008 while Public sector banks saw a decline in their share from 19.6 percent in September 2007 to 12.8 percent in September 2008. A thorough analysis on banks' exposure towards infrastructure disbursements showed that enterprising private sector took interest in communications financing, realizing this sector more attractive. A policy and strategic shift is desired in public sector banks and DFIs who has the potential to contribute much more in infrastructure development. As per the available details, total Rs 38.8 billion had disbursed during July- September 2008 quarter in all infrastructure sectors. Power generation sector received over Rs 17 billion (45.5 percent) which is significantly higher than other sectors. Power Transmission sector occupied second place with approximately Rs 10 billion (25.4 percent). Thus, power Generation and Transmission sectors together received more than Rs 27 billion which represents more than 70 percent share in total disbursement. This demonstrates the efforts initiated to overcome the power shortage crisis in the country. More than 80 percent of the total disbursement is directed in three sectors which call for a diversified approach by the financial institutions to boost other key sectors also. In September 2007 the telecommunication sector was at the top as far as share in total outstanding is concerned with 32.5 percent, followed by Petroleum sector which has almost 21 percent in the total pie of outstanding. After a year the top slot has been secured by power generation sector which nudged the Telecommunication sector at second place with sizable 36.5 percent share. Telecommunication sector's share reduced to 20.7 percent by the end of September 2008. Power transmission sector saw a dip in its share of outstanding and relegated to third position at the end of September 2008 with 14.2 percent share. The recent trend shows that power sector will figure prominently in coming quarters as well. During the quarter total 15 projects have been finalized to the tune of Rs 114.9 billion. Banking sector is financing Rs 84.06 billion, which is 73.2 percent of the total project cost. Power Generation figures prominently as far the financing by banking sector is concerned as 63.4 percent financing for new projects is directed towards five power projects which are expected to add 1090 MW of power to the national grid. Telecommunication and Water and Sanitation sectors come next in terms of project cost (Rs 17.85 billion and Rs 15.4 billion respectively) and financing by banks (Rs 10.2 billion and Rs 11.56 billion respectively). Telecom companies are investing to enhance their network coverage across the country while new investment in Water and Sanitation sector will provide 33 million gallon clean water per day to the metropolis. In Oil and gas Exploration sector Sui Southern Gas Company is expanding its distribution network to the tune of 1800 mmcfd with project cost Rs 14.52 billion. Total outstanding financing at close of September 2008 was Rs 204.13 billion against Rs 159 billion at the end of September 2007. This 28 percent increase in outstanding stock of infrastructure financing during last twelve months and the trough experienced in consumer financing during the same period reveal growing confidence of banking sector for infrastructure financing. The persistent energy crisis in the country impels the power generation sector to enhance the generation capacity and financial sector in responding to this SOS call by channelling huge funds in power sector. The outstanding stock of power generation sector swelled up significantly from September 2007 to September 2008. Telecom sector remained the top sector during three quarters of last year i.e. September 2007, December 2007 and March 2008 as its value remained above Rs 50 billion in each quarter. In June 2008 its value started decreasing which further declined in September 2008 quarter. During this period its value decreased by Rs 10 billion. On the other hand, Power Generation sector grew by leaps and bounds during mentioned quarters. The trajectory of Power Generation is steep and a lot of funding has been witnessed in it. Its value was around Rs 20 billion in September 2007 quarter which stands at more than Rs 70 billion exactly after a year with phenomenal 254 percent growth rate. Petroleum sector remained in roller-coaster as trajectory of its value follows a cyclical path.