The first quarterly report for 2014-15 of State Bank of Pakistan makes an interesting reading. The report has laid special focus on the public sector entities (PSEs) that have been causing a colossal loss to the national exchequer for the past many decades. The central bank seems to have adopted the right approach vis-à-vis PSEs. According to it, there is a need for fast-tracking restructuring of Pakistan Railways, Gencos and Discos, so that these PSEs can contribute positively to country's economic development.
The other major points highlighted by the report are banks' heavy investment in government papers in anticipation of a policy rate hike. It is, therefore, quite interesting to note that private sector credit has managed to register growth, however meagre, despite heavy bank investments in government papers.