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Busting the myth of Low interest rates and growth in Pakistan M.H Yousaf. hasnain_mbar@hotmail.

com While it has been an accepted fact that interest rate environment has a significant effect on the supply and demand for credit in the economy. However, it is not a universal truth and depends upon a host of factors i.e. responsiveness of savings to interest rate, change in governments demand for credit, interest rate transmission and more importantly, the liquidity profile of the banks. Considering the current market dynamics of Pakistan,

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