The Pakistan Industrial and Traders Association Front (PIAF) has urged the banking sector to slash mark-up on industrial loans and enhance profit on deposits to increase the saving rate.
Pakistan Industrial and Traders Association Front Chairman Mian Abuzar Shad said in a statement here on Monday that the banking sector earned a profit of Rs 49.7 billion in first half of 2007 which was 42 percent higher than that in 2006. "Though the banking sector has shown tremendous progress yet they pay very little to depositors. The banks are charging very high mark-up on loans," he said.
He urged the banks to reduce the gap between mark-up and profit on deposits helping boost the saving rate in the country and demanded that the central bank and heads of commercial banks evolve a policy ensuring industrial growth on one side and alleviate poverty on the other.