• Governor calls for deeper capital markets as savings ratio slumps to 7.4pc of GDP
• Private and public investments fall

KARACHI: Pakistan’s domestic savings have dropped to just 7.4 per cent of GDP — far below the regional average of 27pc — creating chronic reliance on external financing and contributing to recurring economic boom-bust cycles, said State Bank Governor Jameel Ahmed on Monday.

Speaking at the conference ‘Unlocking the Capital Markets Potential for Banks’, Mr Ahmed said the country’s low savings rate, coupled with declining investment, has constrained long-term growth prospects.

According to the Pakistan Bureau of Statistics, private investment has declined........

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