Pakistan’s banking sector continues to outperform the wider economy, but this strength masks a long-standing structural weakness: the country’s ineffective loan recovery system. Banks prefer lending to the government instead of the private sector because recovering loans through courts is slow, uncertain and often unsuccessful. Read More: Pakistan’s Loan Recovery Crisis Hurts Banks and Borrowers Senior banking […]
loan recovery
Pakistan’s Loan Recovery Crisis Hurts Banks and Borrowers
Pakistan faces a severe loan recovery crisis as banks struggle to collect bad loans due to slow courts and weak enforcement. Private banks avoid lending to the real economy because defaults drag on for years. Borrowers delay payments by using loopholes and filing repeated appeals. As a result, banks prefer government lending, which deepens credit […]