Karachi, The Pasban Democratic Party (PDP) has called on provincial governments to halt the practice of borrowing billions of rupees annually from private banks for wheat procurement, arguing that this habit wastes taxpayer money. PDP Chairman Altaf Shakoor, speaking in Karachi on Sunday, criticized the banking sector for exploiting both consumers and the government, likening the situation to historical colonial exploitation. He advocated for the government to utilize its own funds for such procurements to avoid the hefty interest payments currently enriching private banks at the public’s expense.
According to Pasban Democratic Party, Shakoor condemned the current banking practices, highlighting Pakistan’s banking spread as among the highest globally. He referenced a report indicating that the weighted average banking spread in Pakistan reached a two-decade peak of 7.73% in the second quarter of 2023, spurred by the central bank’s policy rate hitting a historical high of 22%. This situation, Shakoor argues, exemplifies the broader issue of banks profiting at the expense of the populace and calls for urgent pro-consumer banking reforms in Pakistan.
Shakoor’s critique extends beyond the banking industry to the regulatory environment and consumer protection culture within Pakistan. He asserts that policies favoring private banks contribute to a debt trap for the government and its citizens, lamenting the lack of political advocacy for consumer rights. The PDP Chairman demands that central and provincial governments reduce their reliance on bank loans, particularly for essential services like wheat procurement, to prioritize saving taxpayer money over indebting themselves to profit-driven banks.
This call to action reflects broader concerns about economic policies and consumer rights in Pakistan, highlighting the need for reforms to protect the interests of the poor and prevent financial exploitation by private entities.