The State of Pakistan's Economy - First Quarterly Report
2007-2008

 

The State Bank of Pakistan (SBP) has released The State of Pakistan’s Economy - First Quarterly Report for year 2007-2008.

 

Click here to view the complete report   

 

 

In its report, SBP has highlighted:

 

1)     Outlook for the services sector (accounts for over half the value-added in the economy) remains positive, backed by acceleration in retail and wholesale trade, and better performances by the financial sector and community services.

 

2)     Although the expected deceleration in Large Scale Manufacturing growth (6.9%) indicates a broad-based slowdown in aggregate demand, disaggregated data adjusted for electronics appears strong at 8.0%

 

3)     Additionally, SBP expects a revival in LSM driven by infrastructure industries, which grew 8.3% YoY in 1QFY08 vs 3.7% in the preceding year.

 

4)     On the revenue side, total tax revenue collections have risen to 14.4% YoY during July-Oct 2007, driven by sales tax collection (up 17.1%) and FED (up 19.7%). This highlights the strength in the domestic economy.

 

5)     Overall, export growth rose 11.3% YoY during July-October 2007, thanks to the strong 23.1% growth in non-textile exports.

 

6)     Last but not the least, growth in net credit to the private sector appears to be stabilizing at around 15% YoY. This data point also signifies that the pace of growth in the domestic economy is broadly intact.