LAHROE - The speakers at “The Summit-2015” have observed that heavy investment by banks in government papers has resulted in a rise in the liquidity gap, as the government borrowing from scheduled banks is reaching close to Rs1 trillion. Lending to private sector contracted by 36.5 percent during the first nine months of the current fiscal year of 2014-15, despite the central bank’s efforts to get credit flowing through thrice cut in policy rates.

The “The Summit-2015”, organized by the All Pakistan Business Forum, warned the government that banks’ hefty investment into government papers and low borrowing costs have made little success in investment and spending by the businesses and consumers.  “The Summit-2015” turned out to be a resounding success, attracting an enthusiastic participation from a large number entrepreneurs, economic experts, ambassadors, chambers and other stakeholders.

The event was graced by Speaker of National Assembly Ayyaz Sadiq. Rodolfo J. Martin Saravia, Ambassador of Argentina and Michael Patrick Foley, CEO, Telenor Pakistan also addressed the summit where Telenor, Microsoft and several other leading organizations also signed MoUs with APBF. The speakers said that repayment of large domestic debt looks impossible, and the government is bound to either print money or re-roll the debt. It shows the deteriorating fiscal position of the country, leaving little space for the private sector to enter the credit market.

Addressing the summit, Ayyaz Sadiq said that Pakistan has all the potential to grow. He said that Pakistan is facing war on terror for quite long but we have to be united and we will win it.

Haroon Khuwaja, the chairman, said that APBF is an initiative of the Pakpur Foundation, which is involved in implementing out of the box solutions in the country. He asked the government to put a halt to borrowing from commercial banks, so that credit is available for private sector to expand.

“We offer our technical expertise to apprise the members of the parliament on the intricacies of the budget document. Growth in agriculture is dependent on flood warnings. But nothing is being done to prevent floods which are becoming a yearly event now.”  President of APBF Ibrahim Qureshi said that our mission is to inspiring business leaders to help build a prosperous Pakistan.