Banks edge closer to 50% ADR target to avoid tax penalty

Banks are nearing the mandatory 50% advance-to-deposit ratio (ADR) target to escape the incremental tax imposed by the government.

The State Bank of Pakistan (SBP) reported a record Rs1.35 trillion in private sector lending from July 1 to December 6, exceeding the average for the last three years. Banks also allocated Rs1.33 trillion to non-bank financial institutions (NBFIs) during the…