KARACHI: Textile sector recorded the highest amount of non-performing loans (NPLs) at Rs185.6 billion in 2QCY18 with an infection ratio of 18.9pc, reported the State Bank of Pakistan in Statistical Bulletin-December 2018.
Percentage-wise, agriculture had the highest rate of infected loans during the period at 19.4pc, from 12.6pc in the previous quarter, with NPLs of Rs61.7bn. Agriculture sector has lately been struggling through water shortage as well as the ongoing crisis around sugarcane pricing.
The Small and Medium Enterprises (SMEs) slightly improved their performance as the infection ratio fell to 17.8pc with NPLs of Rs75bn in 2QCY18, compared to 18pc in the first quarter.
Shoes and leather garments sector, which has been losing out to the cheaper influx of foreign shoes and artificial leather entering the local market, had an infection ratio of 18.6pc and NPLs worth Rs5.7bn, from 17.6pc in the previous quarter.
Other sectors with high ratios were electronics at 11.7pc, agribusiness 9.8pcand transportation 11.5pc.
On the other hand, auto industry gave the best performance with infection ratio at just 1.3pc or Rs2.6bn of NPLs while the advances for the sector stood at Rs196.5bn.
Published in Dawn, December 9th, 2018