According to a Business Recorder news item, State Bank of Pakistan's (SBP's) profit declined sharply 35 percent during the last fiscal year (FY21) primarily due to lower income from lending to the government.
SBP earned a consolidated profit of Rs 761 billion in FY21 as compared to a profit of Rs 1.163 trillion in FY20, depicting a decline of Rs 402 billion. "The decline in profit is primarily attributed to lower income from lending to the government, maturing of PIBs, and decrease in average interest rate during FY21", the SBP has been quoted as saying.
Be that as it may, the SBP played highly praiseworthy role in the midst of Covid-19 pandemic. A number of steps taken by the central bank helped the government lessen the adverse impacts of deadly virus on country's economy. It indeed played a crucial role in overall efforts aimed at protecting lives and livelihoods in the country.
Nasrin Khan (Lahore)
Copyright Business Recorder, 2021