Over 60% of every rupee sitting in Pakistani commercial banks is being used to fund government debt.
No sector in Pakistan's history has ever consumed this much bank capital.
When a single borrowerโthe governmentโgobbles up virtually all available credit, the entire economic engine freezes.
And if youโre holding your hard earned money in a bank savings account or a local mutual fund, you are the one financing it.
Hereโs how it works:
Every time the government faces a massive budget deficit, it sells T-Bills (Treasury Bills) and PIBs (Pakistan Investment Bonds) to banks.
The government gets cash today and promises to pay it back later with high interest rates.
Where do banks get the money to buy these government bonds?
From your bank deposits. Your PLS savings account, your salary account, and your income mutual funds.
Over 90% of bank investment portfolios are locked up in government debt.
Instead of lending money to Pakistani entrepreneurs, factories, IT startups, or builders to grow the real economy, local banks make record profits simply by lending your savings back to the state.
Itโs the ultimate risk-free business model for banks.
When debt servicing consumes over 50% of the countryโs entire national budget, a huge chunk of future tax revenues goes straight to paying interest on past debt rather than building infrastructure, hospitals, or schools.
The PSX may rally when interest rates drop or when foreign flows return, but underneath the hood, the foundation relies on whether local private businesses can actually access capital to grow earnings.
#PSX #KSE100 #PMEX
#EURUSD 4H setup for next week.
The bottom structure locked in perfectly at the 1.1324 liquidity sweep. We are now riding a clean ascending recovery channel, breaking out of the discount zone and targeting the heavy 1.1622 premium zone to start our short positions. If you have a prop firm account, this will guarantee a payout
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If you want to hedge against future inflation and achieve real, dollar-beating returns, the stock market remains the absolute best asset class over the long term.
Take a look at the phenomenal milestone achieved by NBP Stock Fund:
FY24 Return: 85.1% ๐
FY25 Return: 67.4% ๐
FY26 Return: 43.6% ๐
Over the past three years, money market funds generated an average cumulative return of just around 55%. By contrast, NBP Stock Fund delivered a staggering cumulative return of approximately 345% over the same 3-year period! Not only did it completely crush fixed-income alternatives, but it also beat the broader stock market (KSE 100 Index) by a solid 10%.
Leave a comment if anyone wants to open an account with NBP Funds. They have both Shariah and Conventional products available for every instrument.
#PSX #KSE100 #PMEX
@aiman_ness Nope Babar captaincy fell of after 2022 wc and it was obvious, lost to India one sided in every match
Lost to Zimbabwe Ireland and USA he deserved being sacked