Karachi Pakistan – Corporate sector is a back bone of countries like Pakistan. These corporations and various business hubs play a vital role to strengthened the economy of our country.
When the financing is allocated to the borrower on the abnormal interest rates like 17 to 19 percent per year always result in a disaster due to the abnormal return as per the unpractical proposals demonstrated by the borrowing company or any individual where usually the profit as described are over and above 70 to 80 percent where as the margins are not practical at large usually deduction of taxes and duties are not adjusted.
Broadly speaking in the international corporate world the interest rates are approximately 2 to 4 percent per anum. Considering the top business giants like China, U.S.A , Japan, Korea, U.K, Canada, the realistic profit margins are usually considered which leads to the healthy returns with a proper legal frame work to treat businessman with a civil litigation by the banks having various laws adapted by the banks including bankruptcy etc.
When ever the banks acted reasonably in the financial market more and more business occurred and strength is seen in these particular institutions.
The role of banks also effects the exports of the country which resulted in a back lock and diminishes the exports which resulted a marginal effect on the country which we can experience now when we observe the export of Pakistan.
BY : Muhammad Noman Saigal
Chef Executive N.S. Group
Former Minister for Health, Environment & Information Technology.
