Professional Documents
Culture Documents
China , India , Bangladesh and Iran are much better placed than Pakistan.
July-April
July-June
Current 2006- 2007- 2007- 2008-
Account 07 08 08 09
July-June July-April
Source: SBP
BALANCE OF PAYMENT – PRE BUDGET
SCENARIO / CURRENT SITUATION
Today, Pakistan faces a severe balance-of-payments crisis and can cover only about
four-six weeks' worth of imports.
The Current account deficit has improved by $ 2.6 billion and stood at $ 8.547
billion during July- April 2008-09 as against $ 11.173 billion in the corresponding
period of last year, thereby showing an improvement of 23.5 percent.
The Financial and Capital account stood at $ 3608 million during July-April 2008-
09 as against $ 6290 million in the corresponding period of last year which shows a
decline of $ 2682 million.
US $ 39 B US $ 36 B US $ 45 B
The Government paid nearly $ 3 B in annual debt servicing payments in the last FY,
this year it will be even more. Together the debt servicing payments amount to nearly
13.8% of the entire budget of $ 29 Billion.
Low Exports.
Water Shortage / Mismanagement which results in low crops.
Energy crisis causing low out put and closure of many industrial units which reduces the exports.
Political Uncertainty.
Fiscal Policies
Trade Restrictions of developed countries.
The United States has not reimbursed over $ 1.2 billion the country spent
on the war on terror.
Under the Coalition Support Fund the U.S reimburses Pakistan for
terrorism related operations.
The govt. has received $447 million since Sep.2008 leaving a balance of
over $ 1 billion.
Textile exports
Workers remittances
B.O.P AND SERVICES SECTOR
• The deficit in services sector decreased by $ 260 million from $ 4,430 million in 2006-07 to $ 4,170 million in 2007-08. The
item-wise receipts and payments in services account are as follows during 2006-2008.
2007-08 2006-07
ITEM
Credit Debit Net Credit Debit Net