exports have registered unprecedented growth during the
current financial year. However, despite satisfactory growth
in overall exports from Pakistan, it is not reflected in the
performance of large scale sector which recorded a growth of
3.2 per cent slightly higher than the same period last year.
One obvious explanation is that the export growth may lead
primarily by small-scale manufacturing or by the
undocumented economy. Growth in the undocumented economy
also speaks of the lower demand for credit from the banking
sector. In the face of the improved economic environment,
the weak growth recorded by large scale manufacturing and
the lower net credit from banks indicates growth of the
economy. The situation calls for immediate attention of the
to take corrective measures. It is the point to ponder upon
why the large scale manufacturing is not availing the credit
facility from the banking sector.