Author(s): Munib Badar
This study examine whether sectoral bank loans i.e. Agriculture, Manufacturing, Commerce and Trade, Services and Consumer loans of Pakistan absorbs monetary policy shocks as uniformaly as the Total loans. The study collected quarterly data from 2006 to 2018 from the official sources of the central bank of Pakistan i.e. State Bank of Pakistan and tested by using econometric techniques. The variables include proxy of central bank Policy Rate, Consumer Price Index, Industrial Production Index and Sectoral bank loans. The outcome of the study reveals that sectoral bank loans i.e. Consumer financing is found to be most responsive towards the Monetary Policy Rate. Lending to the Agriculture and Manufacturing sectors is moderately associated with the Monetary Policy Rate.