Increased economic activity in FY2016-17 may impact inflation. Focusing on inflationary expectations, a nine-member Monetary Policy Committee (MPC) of State Bank of Pakistan (S BP) on Saturday, therefore, decided to maintain policy rate at 5.75 percent for the next two months.
-- One percent rise in LSM growth (3.5%)
-- Cotton and rice output down
-- Sugarcane and wheat crop up
-- Real GDP (market prices) recorded at 5.7%
-- Saving-Investment gap improves
-- Savings as percentage of GDP recorded at 14.6%
-- Gross fixed investment in agriculture, electricity and gas and transport and communications drops.
-- Food inflation YoY increased to 2.3%
-- Non-food inflation YoY decreased by one percent.
-- 2.52% BoP deficit
-- FDI improves by 38.8% in FY16.
-- Fiscal deficit mainly financed by domestic sources
-- Stock of domestic debt rises by Rs 1,236 billion
-- Interest payment on domestic debt shows YoY growth of 4.7 percent
-- External debt rises by $4.1 billion
-- Domestic debt as percentage of total revenue recorded at 29.9%
-- External debt as percentage of exports drops to 19.4%
-- Currency to deposit ratio recorded at 36.82%
-- Credit to private sector up by Rs 461 billion