High inflation and low savings call for higher rates. But low industrial output, investment and falling exports call for lowering of rates. Eventually the rates will have to go up. No choice. Pakistan is setting into recession and there is more money in the system chasing few goods. This will keep on rising and problems will grow.

Banks borrowing to private sector has increased many folds. Mark up rate is already high. I apprehend that cost of doing business is getting unbearable. Default are looking imminent. There must be strategy that defaulted unniys assets be attached by bank and it should be sold to new parties. This will result in recovery of money by Banks. It is worth mentioning Banks had made provisions against defaulted units. Any money generated from the sale of assets of defaulted units will add to the bottom line of Banks. Secondly almost all the governments have given relief packages to these defaulted units but they lack capability and will to run these businesses and wasting huge amount of money in litigation by paying lawyers fee. For many years these defaulters have taken refuge against stay orders . Time has come for banking court to do the needful or change legislation. What is Dr. Ishrat Ul Abad doing ?