I was going through a very good article about the problems which Pakistani banks are facing regarding the liquidity of banks. There were a number of suggestions which were put forward to handle the liquidity problems faced by the banking sectors. Firstly, Rs270 billion has injected in the market in order to solve the liquidity problems. Secondly, Governor of State Bank has also announced that state bank of Pakistan has abolished the statutory liquidity requirement(SLR) for banks on time deposits of over one year. There are a number of other solutions which are put forward to combat the problem. The role of government in all this scenario is that liquidity problems are also caused because of the increased government expenditures. Therefore, the government has planned to lower its expenses because this will decrease the rate of depletion of the reserves and the liquidity of the banks will increase.
