Commercial banks have enough liquidity to feed the private sector despite investing heavily in government instruments, Governor State Bank of Pakistan (SBP) Ashraf Mahmood Wathra said earlier today.
However, responding to a number of issues and complaints raised by the industry and business leaders in a meeting at the Federation House, the governor agreed that banks prefer to invest in treasury bills (T-bills) and Pakistan Investment Bonds (PIBs) rather than in other sectors of the economy.
He attributed the phenomenon of banks’ higher investment in bonds and T-bills to government and public sector needs.
