ISLAMABAD -- The share of Islamic Banking Institutions (IBIs) in banking sector's asset increased to 14.4 percent during the first half of the current calendar year, State Bank of Pakistan (SBP) reported.
According the latest report of SBP, the IBIs contribution in total assets flows during January-June 2019 was the highest in the last three years, indicating growing significance of IBIs.
However, investment (in Sukuk3 ) took the lead to push the assets during the current half in contrast to previous corresponding halves when financing had played the major role, it added.
With the widespread deceleration in advances growth, the advances could only contribute 14.4 percent share in the asset growth during the period under review, lower than the average of 53.3 percent during the comparable period of last 3 years.
The demand for loanable funds weakened in both the private and public sectors, it said adding that the growth in private sector advances remained minimal during the period as compared to average expansion of 7.6 percent in the comparable period of last three years.
This slowdown in private sector advances also resulted from increased risk aversion by banks, besides the seasonality.
This decline was mirrored by imports, which dropped by 17.1 percent (USD 24.5 billion in first half against US$29.6...