Banks have excess liquidity of Rs 1.266 trillion, but investment in productive sectors still lags

Banks and financial institutions currently hold excess liquidity of Rs 1.266 trillion. The country is also receiving more than Rs 2.3 trillion in remittances annually.

Despite such a large sum piling up in banks and remittances continuing to flow in, investment in the country has not increased. In particular, investment has not grown in productive sectors and areas that create employment.

Despite sufficient money being available, the country's business environment is reported to be the most discouraging in the past 36 years.