Asia-Pacific

Dubai debt crisis not to affect Pakistan's banking system: experts

(Xinhua)
Updated: 2009-12-02 21:55

ISLAMABAD: Pakistan's banking sector is very sound and has shown its resilience during the global financial crisis so it will be hardly affected by the Dubai crisis, financial experts said here Wednesday.

"We have well regulated financial system and Dubai debt crisis should have no direct impact on our banking system," renowned economist Rashid Amjad was quoted by the official news agency APP as saying.

However, he said that the two economies are closely linked through trade and investment but "we are hopeful that given improved physical and financial infrastructures Pakistan banking system will be able to weather the current economic downturn."

"There is no reason for any bad impact of Dubai crash on Pakistani banks," a senior banker also observed, adding that only a few Pakistani banks have little exposure to Dubai.

He said that United Bank Limited (UBL) and Habib Bank Limited (HBL) have little exposures in Dubai as UBL was involved in doing business there but the bank has already announced that its business would not be hurt with this crash.

The UBL in a statement has announced that its UAE balance sheet and operations were healthy and robust and were not challenged by the current financial crisis in the Emirates.

The banker further said that the HBL has also exposure in Dubai but is much less than UBL, which would be ignored if size of the bank is considered.