Re: BB sold Surrey Palace, NA told
Yaar I was saying that people can afford things b/c or easy access to credit, and not b/c of reduction in poverty as claimed MP Bhandara. Also, banking system might be good, but fact is there is no way to check to see financial worthiness of an individual b4 banks can issue credit.
True National database of private individuals on credit worthiness is not avilable as in UK or USA....But inspite of this consumer loans are increasing at a very healthy rate in Pakistan and without much default...
Just imagine the automoblie industry..... More than 70% of the new cars sold today in Pakistan are directly leased by the banks....The whole automobile industry in Pakistan will collapse if there wasn't an effcient system of lending in this sector...
An area where we are lagging behind say compared to UK is housing sector. If we inject credit in this sector in real sense you can not imagine we can surpass the economic growth rate of China....However due to bad foreclosure laws in this sector real finance is not going in to this vital sector of consumer lending....