BalanceofPayments

Theglobaleconomic downturnimpactedworldoutputandtradevolumesadverselyduring2009.The
contraction in global trade was the sharpest since World War II, with trade volumes falling over 10
percent. With an upturn underway in the world economy for the past two quarters, the outlook for
global trade appears to have become more positive, as depicted by the modest improvement in the
BalticDryIndex,akeyearlygaugeofglobaltradevolumes(Fig1).
Fig1:BalticDryIndex

Source:Bloomberg

Amidstilldifficultglobaleconomicconditions,largecoststoexportsimposedbythewaronterror1,and
a severe energy crisis faced by Pakistans economy, the external sector witnessed an overall
improvementduring200910.Thisrecoverywasmainlycontributedbyasharpnarrowingofthecurrent
account deficit which more than offset the declining financial account surplus during the period. In
addition,macroeconomicstabilizationmeasurestakenbythegovernmentalsosignificantlycontributed
tooverallimprovementintheexternalsectorofPakistan.
The external current account deficit is expected to contract to around 2.8 percent of GDP in the
outgoingyear.Thislargeimprovementismainlyonthebackofasteepdeclineinimportsformuchof
theyear,improvingexportsasworlddemandisgraduallyrestored,andacontinuedincreaseinworker
remittances,whichareexpectedtoreach4.8percentofGDPforthefullfiscalyear.Workerremittances
haveincreasedfromUS$6.4billioninJulyApril200809toUS$7.3billionintenmonthsofthecurrent

According to The Global Enabling Trade Report 2010, Pakistan ranked 123 out of 125 countries of the world in terms of
business cost of terrorism.

87

EconomicSurvey200910

fiscalyear(JulyApril).Alargepartoftherecentincreaseinremittances,whichappearstobesecularin
nature, has emanated from a policy initiative of the government in early 2009 called the Pakistan
Remittance Initiative (PRI). With the potential for formalising the remittances market estimated
betweenUS$16billion(WorldBank)andUS$21billion(PRI)annually,furthersuccessonthisfrontcan
havefarreachingpositiveeffectsonstabilityofPakistansbalanceofpaymentsintheyearsahead.
An added factor that is likely to extend support to the external account in the months ahead, and
possiblyformuchof201011,isthecollapseinglobalcommoditypricesinducedbytheEurozonewide
contagionfromtheongoingGreekdebtcrisis.SincethestartofthedifficultiesinGreeceearlierin2010,
international oil prices have fallen by over 11 percent. However, developments on this front could
potentiallyalsoimpactremittancesandexports,especiallyifthefalloutisnotcontained,andspreadsto
otherregions.Onbalance,itappearsfornowthat,inimmediatetermsatleast,thedeflationinimport
paymentswilloutweightheotherfactors,asevidentfromFigure2.Ifso,thiscouldinsulatetheexternal
accountfrompressureinthenearterm.
Import

Export

April10

March

February

January

December

November

October

September

August

July09

%Growth

Fig2:MonthlyExport&ImportGrowth

50.0
40.0
30.0
20.0
10.0
0.0
10.0
20.0
30.0
40.0
50.0

Source:FBS

7.1TradeBalance2
Pakistans merchandise trade deficit improved by 13.9 percent in JulyApril 200809 from $ 14,218
millionto$12,238millionduringJulyApril200910.Unlikelastyearwhenthedeclineintradedeficit
wasmainlycontributedbymassivefallinimportexpendituresduetodeclineininternationalprices,this
yearsimprovementintradedeficitremainedbroadbased,withbothexportsandimportscontributing
tothedecline.
Exports recorded growth of 8.0 percent during JulyApril 200910 on the back of recovery in export
markets of the country, exchange rate depreciation, and improved production of crops. Moreover,
during JulyApril 200910, export receipts of the country surpassed the full year official target of 6.0
percent exports growth for 200910. Exchange rate depreciation, reduced imports prices and slower

The analysis of trade balance, exports and imports is based on trade data released by Federal Bureau of Statistics (FBS) on
customs basis.

88

BalanceofPayments

domestic demand remained the major factors behind the decline in imports during the period under
review. The import bill of the country decreased by 2.8 percent during JulyApril 200910 over the
comparableperiodoflastyear.
The narrowing trend in monthly trade deficit started to reverse since December 2009 when it
deteriorated by 59.9 percent and reaching at 41.9 percent deterioration in the month of march
2010.However,tradeaccountofthecountryhasonceagainwitnessedanimprovementof13.9percent
inthemonthofApril2010overthesamemonthlastyear.Keepinginviewmonthlytrendvariationsin
tradedeficitduringtheperiodandincreasingmonthlyimportbillalongwithexpectationsofincreasein
internationaloilprices,it isexpected that countrystradedeficitmay comeunder pressureincoming
months.
7.2Exports
Exportsamountedto$15.9billioninJulyApril200910asagainst$14.7billioninsameperiodlastyear,
showing a growth rate of 8.0 percent compared to the negative growth rate of 3.0 percent in same
periodlastyear.Higherquantumexportofitemslikerice,fruitsandrawcottonduetotheirimproved
production in country along with recovery of international demand and exchange rate depreciation
weremajorreasonsfortheincreaseinexportsduringtheperiodunderreview.
Within the broad categories of exports, all major sectors witnessed positive growth during JulyApril
200910overthecorrespondingperiodoflastyear.
TextileswhichisamajordriveroftheexportsofPakistancaptured53.3percentshareintotalexports
duringcurrentfiscalyearandwitnessedanabsoluteincreaseof$556.2millionduringJulyApril200910
oversameperiodlastyear(seeTable7.1).
Nontextile exportsgrew by9.2percentduring JulyApril200910overthe 5.3percent growthratein
sameperiodlastyear.Thisyearsgrowthofnontextilegrouphasbeencontributedbypositivegrowth
rates of food group (7.1 percent), petroleum group (7.3 percent) and all other items group (65.9
percent).
FoodGroup exportincreasedby7.1percentduringJulyApril200910when comparedwith thesame
period last year. Furthermore, food groups share remained at 17.2 percent in total exports and it
contributed15.3percenttothisyearsoverallexportgrowth.
With a 66 percent share in food group and 11.4 percent in overall exports of this year, rice exports
witnessedagrowthrateof7.5percentduringtheJulyApril200910overthesameperiodlastyearon
thebackofincreaseinquantumexportofrice.
Theoverallincreaseinexportofricecamefromnonbasmatiriceasquantityexportofnonbasmatirice
increasedby100.5percentcomparedto2.7percentincreaseinexportsquantumofbasmatiriceduring
JulyApril200910overthecorrespondingperiodlastyear.
Quantity export of rice increased by 66.0 percent on the back of improved domestic production and
higherimportdemandfromcountriesKenya,IranandSaudiArabia.Inadditiontorice,fruitsandhalal
meat&meatpreparationremainedthemajorcontributortoincreaseinfoodexportsduringtheperiod.
The increase in fruits exports has been led by improved harvest, better marketing strategies and
improvedmarketaccess.
89

EconomicSurvey200910

A significant recovery has been witnessed in the group of textile exports. As textile exports grew
positivelyby7.0percentduringJulyApril200910overthe9.3percentfallinsameperiodlastyear.This
recovery in textile exports is led by higher than targeted production of cotton crop and recovery in
externaldemand.
Table7.1:ExportPerformance,MajorCategories

($Millions)
JulyApril

Particulars
A.FoodGroup
Rice
Fish&FishPreparation
Fruits
Meat&MeatPreparation
AllotherFoodItems
B.TextileManufactures
RawCotton
CottonYarn
CottonCloth
Knitwear
BedWear
Towels
ReadymadeGarments
MadeupArticles
OtherTextileMaterials
C.PetroleumGroup
PetroleumProducts
PetroleumTopNaphtha
D.OtherManufactures
Carpets.Rugs&mats
SportsGoods
LeatherTanned
LeatherManufactures
SurgicalG.&Med.Inst.
Chemicals&Pharma.Pro.
EngineeringGoods
Jewellery
Cement
Allothermanufactures
E.AllOtherItems
Total
*:Provisional

200910*

200809

2,727.9
1,807.0
182.1
208.8
81.6
399.0
8,461.7
194.2
1,211.0
1,466.0
1,424.2
1,400.0
553.3
1,059.6
439.6
713.8
773.3
456.2
316.9
2,990.4
117.0
236.5
255.8
368.6
190.1
621.6
197.1
397.0
394.2
212.5
930.8
15,884.1

2,547.8
1,681.3
193.6
134.6
58.4
421.8
7,905.5
80.8
916.5
1,641.4
1,434.3
1,408.6
527.8
1,007.1
396.8
492.1
720.5
401.1
319.1
2,968.6
126.7
227.2
252.9
470.9
211.7
509.4
210.5
195.9
475.3
288.0
561.0
14,703.3

%Change
7.1
7.5
6.0
55.1
39.8
5.4
7.0
140.2
32.1
10.7
0.7
0.6
4.8
5.2
10.8
45.0
7.3
13.7
0.7
0.7
7.7
4.1
1.1
21.7
10.2
22.0
6.3
102.6
17.1
26.2
65.9
8.0

Absolute
Increase/
Decrease
180.1
125.6
11.5
74.1
23.2
22.8
556.2
113.3
294.5
175.4
10.1
8.6
25.5
52.5
42.8
221.7
52.8
55.1
2.2
21.8
9.8
9.3
2.9
102.3
21.6
112.3
13.4
201.1
81.1
75.5
369.8
1,180.8

%Share
17.2
11.4
1.1
1.3
0.5
2.5
53.3
1.2
7.6
9.2
9.0
8.8
3.5
6.7
2.8
4.5
4.9
2.9
2.0
18.8
0.7
1.5
1.6
2.3
1.2
3.9
1.2
2.5
2.5
1.3
5.9
100.0
Source:FBS

Lowvalueaddedproductslikerawcottonandcottonyarnfetchesthemajorshareofcontributionin
the textile group on the back of factors like early and better production of these crops along with
restorationofexternaldemandspecificallyfromChina.Theexportreceiptsfromrawcottonandcotton
yarngrewby140.2percentand32.1percentduringJulyApril200910overthesameperiodlastyear,
while contributing additional $ 113.1 million and $ 294.5 million amount to this years export,
respectively.Furthermore,quantumexportsofrawcottonandcottonyarnincreasedby116.4percent
90

BalanceofPayments

and29.0percentrespectivelyduringJulyApril200910.
The export performance of high value added like knitwear, bed wear and readymade garments has
shownmixedtrendintermsoftheirgrowthinquantity,valueandprice.Thequantityexportofknitwear
and readymade garments witnessed decline of 8.1 percent and 7.4 percent respectively during the
period. This fall in quantum exports mainly owed to unfavourable conditions in advanced economies
anddomesticproblemslikeenergycrisis.
While bed wear witnessed negative growth in value of its exports mainly due to lower international
pricesasquantumexportincreasedduringtheperiodreflectingimprovementinexternaldemand.
BoxItem1:MappingPakistansMajorExportsWithFastestGrowingProductsofWorld
Acomparative analysis ofproduct wise shares inWorldexports and Pakistans exports exhibits amixed picture.
Pakistansmajorexportscategoriesremainedtextile,manufactures,othermanufacturesandfoodhavingsharesof
51.0percent,24.0percent,24.0percentand15.0percentrespectivelyduringFY09whereas,theworldsexports
during2008areconcentratedinmanufactures,machinery&transportequipment,fuelandminingproductsand
fuelswiththeshareof67.0percent,34.0percent,23.0percentand18.0percentrespectively.Thisanalysisshows
thatthereissignificantdivergencebetweenpatternsofworlddemandandtheitemswhichPakistanisexporting.
Thedivergenttrendshowstheexistenceofstructuralrigiditiesintheexportbaseofthecountry.
MerchandiseTradebyProduct
%Sharein
%Sharein
Commodities
World
Pakistans
Exports2008
Exports(FY09)
Manufactures
67
24
Machineryandtransportequipment
34
*
Othermachinery
12
1
Otherchemicals
8
1
Automotiveproducts
8
*
Othertransportequipment
4

Telecommunicationsequipment
4

Ironandsteel
4

EDPandofficeequipment
4

Pharmaceuticals
3
1
Integratedcircuits
3
Fuelsandminingproducts
23

Fuels
18
5
Agriculturalproducts
9

Food
7
15
Othermanufactures
8
24
Miscellaneousmanufactures
4

Personalandhouseholdgoods
2

Textiles
2
51
*:NotMeaningful,:NotAvailable

Avg.FiveYears
GrowthRate
World
Pakistan
14
14
17
*
15
24
16
18
11
18
15

14

27

16
7
9

30

31
45
15

15
19
13
14
12

13

8
4
Source:WTO&SBP

ComparinggrowthinthesemajorexportitemsofPakistanwiththeworldexportgrowthofthesamecategories
suggeststhatwiththeexceptionoftextiles,majorexportcommoditieshavemanagedsignificantgrowthinthelast
fiveyears.Infact,growthrateofmostmajorexportcommoditiesofPakistan(withtheexceptionoftextiles)during

91

EconomicSurvey200910
thelastfiveyearshasaveragedhigherthanworldgrowthrates.Whileexportsoftextile,whichisconsideredtobe
theitemofcomparativeadvantage,haveexhibitedgrowthof4.0percentagainstworldgrowthof8.0percentin
thesameitemsrespectively.

Petroleumgroupexportvalueincreasedby7.3percentduringthefirsttenmonthsofthecurrentfiscal
year as compared to same period last year. This increase in the group of petroleum mainly owes to
increase in quantum export of petroleum products which grew by 19.3 percent during the period.
Moreover,the4.5percentcontributionintheincreaseoftotalexportsfortheperiodJulyApril200910
camefromthisgroup.
Othermanufacturegroupexportincreasedby0.7percentduringJulyApril200910comparedtosame
period last year. Jewellery exports have exhibited a stellar growth of 102.6 percent during JulyApril
200910 over the corresponding period last year and its share in other manufacture group has also
increased from 7.0 percent to 13.0 percent during period under review. Furthermore, 17.0 percent
contributionintheincreaseintotalexportscamefromthissingleitemduringtheperiod.
Withtheincreaseof52.6percentgrowthduringthelastyear,cementexportdeclinedabruptlyasitfell
by17.1percentduringcurrentperiodJulyApril200910.Thisperformancebycementsectorwasbroad
based as both the quantum and per unit price of exports witnessed decline of 1.7 percent and 15.7
percent respectively during the period under review. Cement export fell because of decline in its
externaldemandandexpectedincreaseincompetitionfacedbycementindustryespeciallyfromSaudi
Arabia.
Despiteofdeclineinoverallexportsgrowthby6.3percentinengineeringgoods,theexportsofitems
likeelectricfans,transportequipmentsandotherelectricalmachineryinengineeringgoodswitnessed
anincreaseinexportof38.0percent,82.2percentand19.5percentrespectivelyduringJulyApril2009
10 over the same period last year. The quantum export of electrical fans increased by 45.9 percent
duringtheperiodonthebackofincreasedexternaldemandbydifferentimportmarketsoftheworld
i.e.Africa,MiddleEastandSouthAsia.
The category of leather manufacturers exports declined by 21.7 percent during JulyApril 200910
comparedtosameperiodlastyearasallthreesubitems(i.e.leathergarments,leatherglovesandother
leather manufacturers) witnessed negative growth due to low external demand, lack of modern
technologies, law and order situation, low skilled labour and energy crises. Furthermore, competition
fromotherregionaleconomiesalsohinderedtheexportsofleatherindustry.
7.2aConcentrationofExports
During current fiscal year 200910, countrys major exports followed previous years trend of being
concentratedinfiveitems(cottonmanufacturers,leather,rice,synthetictextileandsportsgoods).These
fivecategoriesaccountsfor70.9percentshareinthetotalexportsduringJulyMarch200910(seeTable
7.2).Intensityofconcentrationfurtherdeepenswhenanalyzedwithinthesefiveexportitems,as51.3
percentcontributioninthetotalexportscamefromcottonmanufacturersduringJulyMarch200910.

92

BalanceofPayments
Table7.2:PakistansMajorExports(PercentageShare)
JulyMarch
0809
0910*
52.3
51.3

Commodity

0203

0304

0405

0506

0607

0708

0809

Cotton
Manufacturers
Leather
Rice
SyntheticTextiles
SportsGoods
SubTotal
OtherItems
Total
*Provisional

63.3

62.3

57.4

59.4

59.7

51.9

52.2

6.2
5.0
5.1
3.0
82.6
17.4
100

5.4
5.2
3.8
2.6
79.3
20.7
100

5.8
6.5
2.1
2.1
73.9
26.1
100

6.9
7.0
1.2
2.1
76.6
23.4
100

5.2
6.6
2.5
1.7
75.7
24.3
100

5.8
5.4
5.6
4.3
9.8
11.2
11.4
11.4
2.1
1.6
1.4
2.4
1.6
1.5
1.5
1.5
71.2
71.9
72.2
70.9
28.8
28.1
27.8
29.1
100
100
100
100
Source:FederalBureauofStatistics

Fig3:ExportsConcentration

%Share

In spite of the structure of exports having

concentratedinfewitems,ithaswitnessedagradual
change,astheshareofotheritemsinoverallexport
increased from 17.4 percent in 200203 to 29.1
percentinJulyMarch200910(seeFig3)whichisan
encouragingsignfortheexportsectorofPakistan.

90
80
70
60
50
40
30
20
10
0

SubTotalofFiveItems
OtherItems

0910

0809

0708

0607

0506

0405

0304

0203

Textile is the major driver of export sector of

Pakistan.Itnotonlyemploysthebulkoflabourforce
but also earns much needed foreign currency.
Generally textile manufacturer sector is segmented
intotwomajorpartsconsistingoflowandhighvalue
added items. Being an agrarian country and ample
availability of raw material required to produce
Source:FBS
higher quantity of high value added items like
knitwear, bed wear, towels and ready made
garments,Pakistancanonlymanagetosustainthefixedamountofshareofhighvalueaddeditemsin
exportsinplaceofincreasingitsshareintotalexports.Asevidentfromthetablegivenbelow,theshare
ofhighvalueaddeditemsremainedinthebandof50to60percentsharesince20012002.Furthermore
this overall trend began to deteriorate after its peak year of 200506 when the share of value added
itemswas58.0percentintotaltextileexportsanditiscontinuouslyondeclinesinceandstoodat52.7
percent share in overall textile manufacturer during JulyMarch 200910 over 54.4 percent in same
periodlastyear(seeTable7.3).
Table7.3:ExportofTextileManufactures(%Share)
Item

0102

0203

0304

0405

0506

0607

0708

0809

CottonYarn
CottonCloth
Knitwear
Bedwear
Towels
Tents,Canvas&
Tarpaulin
Readymade

16.1
19.6
14.6
15.9
4.6
0.9

12.9
18.6
15.9
18.4
5.2
1.0

14.0
21.3
18.1
17.2
5.0
0.9

12.7
23.3
18.9
16.4
5.9
0.8

13.7
21.6
17.6
20.8
5.8
0.3

13.6
19.3
18.7
19.0
5.7
0.7

12.5
19.4
18.0
18.3
5.9
0.7

11.7
20.5
18.2
18.2
6.7
0.6

JulyMarch
0809 0910*
11.6
14.1
21.0
17.2
18.3
17.0
17.8
16.6
6.6
6.5
0.7
0.6

15.1

15.1

12.4

12.9

13.8

13.2

14.0

12.9

12.7

12.6

93

EconomicSurvey200910
Table7.3:ExportofTextileManufactures(%Share)
Item
Garments
SyntheticTextiles
MadeupArticles
Others

*Provisional

0102

0203

0304

0405

0506

0607

0708

0809

7.1
6.1

100

7.9
5.0

100

5.9
5.2

100

3.5
5.5
0.1
100

2.0
4.3
0.1
100

4.0
4.5
1.3
100

3.9
5.2
2.1
100

2.9
5.0
3.3
100

JulyMarch
0809 0910*
2.6
4.4
5.0
5.2
3.7
5.8
100
100
Source:FBS

7.2bCompositionofExports
Theshareof primary,semimanufacturedandmanufacturedproductsin compositionofexportssince
199495 have remained more or less stagnant. As approximately three fourths of Pakistans exports
constitute of manufactured goods (see Table 7.4).This stagnation indicates slow movement towards
sophisticationthroughtechnologyandinnovation.Morerecently,theincreaseinprimarycommodities
exportsowestoimprovedproductionofcottoncropsandamidstofrevivalofexternaldemand.Whilea
dipinmanufacturedgoodcanbeattributedtolowerpricesonexternalfactorandondomesticfront,
themainfactorisenergycrisisfacedbytheexportsector.
Table7.4:CompositionofExports
Year

(%Share)

12
11
10

Manufactured
Goods
77
75
74

9
11

74
71

PrimaryCommodities SemiManufactures

200607
200708
200809
JulyMarch
200809
200910*
*Provisional

11
14
16

17
18

Total
100
100
100
100
100
Source:FBS

7.2cDirectionofExports
While the composition of exports remains fairly concentrated, Pakistan has achieved significant
geographicaldiversificationofitsexports.Duringtheyear20012002,54.9percentofPakistaniexports
were concentrated in seven major exports markets (USA, Germany, Japan, UK, Hong Kong, Dubai and
Saudi Arabia) and the remaining exports share of 45.1 percent consists of all other countries. This
concentrationofexportmarketcontinuouslydeclinedsince20012002andpresently31.6percentshare
of exports is held by six major countries (see Table 7.5) with the remaining countries making up 68.4
percentofexports.
Notwithstanding the reliance on fewer exports markets as evident from the percentage share of
differentexportdestinationsduringJulyMarch200910.WhichsuggeststhattheUSAcapturedthe17.3
percentshareinallexportmarketsofcountryandstillcontinuedtosustainthelargestexportmarketof
thecountry.

94

BalanceofPayments
Table7.5:MajorExportsMarkets(PercentageShare)
Country

0102

0203

0304

0405

0506

0607

0708

0809

USA
Germany
Japan
UK
HongKong
Dubai
SaudiArabia
SubTotal
Other
Countries
Total
*Provisional

24.7
4.9
1.8
7.2
4.8
7.9
3.6
54.9

23.5
5.2
1.3
7.1
4.6
9.0
4.3
55.0

23.9
4.9
1.1
7.6
4.7
7.3
2.8
52.3

23.9
4.8
1.1
6.2
3.9
3.3
2.5
45.7

25.5
4.2
0.8
5.4
4.1
5.6
2.0
47.6

24.6
4.1
0.7
5.6
3.9
1.1
1.7
41.7

19.5
4.3
0.7
5.4
2.7
0
2.0
34.6

18.9
4.2
0.6
4.9
2.1
0
2.6
33.3

JulyMarch
0809
0910*
18.6
17.3
4.3
4.2
0.7
0.5
4.8
5.5
2.2
2.1
0
0
2.4
2.0
33.0
31.6

45.1

45.0

47.7

54.3

52.4

58.3

65.4

66.7

67.0

100

100

100

100

100

100

100

100

100
100
Source:FBS

68.4

7.3Imports
ImportgrowthduringJulyApril200910declinedby2.8percentagainstthecorrespondingperiodlast
year. Lower international prices, compressed domestic demand, exchange rate depreciation and
improvedproductionofcotton cropsremained the majorfactorsbehind the overalldeclineinimport
bill.Amongthemajorimportgroups:food,machineryandtelecomgroupswitnessedadeclineduring
JulyApril 200910 while Petroleum, consumer durables, raw materials and other items groups
witnessedanincreaseingrowthduringtheperiodunderreview(seeTable7.6).
Foodgroupimportsdeclinedby21.3percentduringJulyApril200910overthecorrespondingperiod
last year, on absolute terms food group declined by $ 754.9 million against the $ 107.9 million
contractioninthecorrespondingperiodofJulyApril200910.Inadditiontothat,foodgroupwitnessed
highestdeclineinabsolutetermsduringthe period.Thisdeclineinfood groupis mainly attributedto
reducedquantumimportasunitvaluesofmostoffooditemsremainedhigherduringJulyApril200910
oversameperiodlastyear.
Withinfoodgroupitems,wheatimportbillwitnessedthemaximumdeclineof96.4percentontheback
ofsufficientavailabilityofwheatinthecountryaswheatquantityimportfellby97.2percent.Importbill
ofedibleoilfellby12.5percentduetocontractioninitspriceandquantityimports.Ontheotherhand,
thehighestgrowthinimportbilloffoodgroupwaswitnessedinsugarwhichincreasedby591.6percent
duringJulyApril200910againstthesameperiodlastyearmainlyasaresultoftheeffortstoimprove
thedomesticsupplyconditionofsugarinthecountry.Boththepriceandquantityeffectcontributedto
this increase in sugar import bill but quantum import effect remained higher than the price effect as
quantityofimportedsugarincreasedby430.7percentandunitvalueofsugarincreasedby30.3percent
duringJulyApril200910overthecorrespondingmonthoflastyear.Furthermore,theimportbilloftea,
pulsesandmilk&milkfoodalsoincreasedsubstantiallyduringthisperiod.
Machinery groupimportdeclinedby10.6percentduring JulyApril200910overthesameperiodlast
yearandwitnessedadeclineof$460.0millioninabsolutetermsduringcurrentfiscalyear200910.The
highest decline was observed in construction & mining machinery, which declined by 43.4 percent
duringperiodunderreview.Withthemajorshareofabout32.2percentinmachinerygroup,Importof
powergeneratingmachinerywitnessednegativegrowthof11.0percentduringJulyApril200910over
66.5 percent expansion during the same period last year which suggests accumulation of higher
95

EconomicSurvey200910

inventoriesduringlastyeartherebylowerdomesticdemandduringcurrentfiscal200910.
Import of agricultural machinery posted an increase of 130.6 percent growth during the period under
reviewwithanadditionof$101.9millioninoverallimportbillofthecountry.Thisgrowthinagriculture
machineryisledbyincreasedimportoftractorsandpartsoftractorsonthebackofprojectslikeGreen
andBenazirTractorSchemes.Furthermore,majorityofagriculturemachineryconsistsoftractorsandits
parts.
Textile machinery import witnessed substantial growth of 20.5 percent during JulyApril 200910 over
the49.0percentdeclineincorrespondingperiodlastyear.Thiscanbeseenasareflectionoftherevival
intextilerelatedactivitiesinthecountry.
Import bill of petroleum group expanded by 1.3 percent during JulyApril 200910 over the
corresponding period last year. This rise in import bill of country is mainly caused by higher quantum
import of the petroleum product category which increased by 24.1 percent during JulyApril 200910
comparedtosameperiodlastyear.Ontheotherhand,quantumimportofpetroleumcrudecategory
witnessed a decline of 9.8 percent during the period under consideration. The decline in petroleum
crude was mainly caused by circular debt problem faced by refineries thereby causing an increased
importofpetroleumproducts.
Beside that, higher quantum import effect in the overall increase of import bill is also evident from
fallingunitvaluesofitemsinpetroleumgroupaspetroleumproductsandpetroleumcrudecategories
witnessed a decline of 7.3 percent and 8.4 percent in respective unit values during JulyApril 200910
against the same period last year. However, monthly trend suggests that falling oil prices started to
reverse and unit values of categories of petroleum group turned out to be positive beginning in
December2009.Furthermore,inthemonthofApril2010,theimportpricesofpetroleumproductsand
petroleumcrudewitnessedanincreaseof62.3percentand79.7percentrespectively.
Fig4:TrendinOilPrices(MonthlyAverage)
135
115

$/Brl

95
75
55

Source:WorldBank

Apr

Jan10

Oct

Jul

Apr

Jan09

Oct

Jul

Apr

Jan08

Oct

Jul

Apr

Jan07

35

Thetrendininternationalpricesofoilsuggeststhatoilpricesincreasedfrom$54perbarrelinJanuary
2007 to $ 134 per barrel by June 2008. After reaching at peak level in June 2008, oil prices declined
rapidlyandstoodatitsbottomlevelof$39perbarrelinFebruary2009,andsincethan,theoilprices
96

BalanceofPayments

have started to increase (see Fig 4) . The volatile nature of international oil prices indicates the
vulnerabilityofoilimportingcountriesandasbeinganoilimportingcountry,Pakistanisnoexception.
Maximum increase among all major import groups has been witnessed in consumer durable group,
whichgrewby6.4percentduringJulyApril200910oversameperiodlastyear.Thisriseismainlyledby
increaseindomesticdemandofroadvehicleimportwhichexhibitsagrowthrateof25.6percentduring
the period. Within road motor vehicles, the import of CKD kits increased by 63.7 percent during the
periodunderreviewasimportofcarsandmotorcyclescategoriesincreasedby76.6percentand85.5
percentrespectively.Asaresult,saleandproductionofcarsandmotorcyclesalsoincreasedthereby
importofRubberTyres&Tubesgroupwitnessanincreaseof21.7percentduringJulyApril200910.
DuringJulyApril200910importgroupofrawmaterialwitnessedagrowthrateof1.5percent.Within
raw material group, import of fertilizer manufactured remained the prominent factor leading to the
increase in import bill of raw material group. As import of fertilizer manufactured on absolute terms
increased by $ 196.8 million during this period on the back of aggressive offtake of fertilizers by
farmers. This may be viewed as larger import quantum to improve domestic supply condition of
fertilizer.
Import of gold increased from $ 31.7 million in JulyApril 200809 to $ 129.4 million during JulyApril
200910. This increase was mainly driven by higher quantity import of gold. Which grew by 267.6
percentduringperiodunderreview.
Amongallmajorimportgroups,thehighestdeclinewasobservedintelecomsector,whichdeclinedby
30.1percentduringperiodunderreview.Thisdeclineintelecomsectorshowsthesaturationintelecom
market.
Table7.6:StructureofImports
Particulars
A.FoodGroup
Milk&milkfood
WheatUnmilled
Dryfruits
Tea
Spices
EdibleOil(Soybean&PalmOil)
Sugar
Pulses
AllOtherFoodItems
B.MachineryGroup
PowerGen.Machines
OfficeMachines
TextileMachinery
Const.&MiningMach.
AircraftShipsandBoats
Agri.Machinery
OtherMachinery
C.PetroleumGroup
PetroleumProducts

($Million)
JulyApril
200809
200910
3,539.9
2,785.0
63.0
67.8
1,053.8
35.4
69.8
67.7
198.0
227.8
58.4
60.9
1,205.4
1,055.2
27.7
191.2
187.5
209.3
676.4
869.7
4,355.4
3,895.4
1,407.6
1,252.9
215.0
185.9
183.4
221.0
246.1
139.4
379.7
579.2
78.1
180.0
1,845.5
1,336.9
8,017.0
8,118.6
4,612.4
5,305.3

%Change
21.3
7.6
96.6
3.0
15.1
4.4
12.5
591.6
11.6
28.6
10.6
11.0
13.5
20.5
43.4
52.5
130.6
27.6
1.3
15.0

Absolute
Increase
754.9
4.8
1,018.3
2.1
29.8
2.6
150.3
163.6
21.8
193.3
460.0
154.7
29.1
37.6
106.8
199.5
101.9
508.6
101.5
692.9

%Share
9.9
0.2
0.1
0.2
0.8
0.2
3.8
0.7
0.7
3.1
13.9
4.5
0.7
0.8
0.5
2.1
0.6
4.8
28.9
18.9

97

EconomicSurvey200910
Table7.6:StructureofImports
Particulars
PetroleumCrude
D.ConsumerDurables
Elect.Mach.&App.
RoadMotorVeh.
E.RawMaterials
RawCotton
Syntheticfiber
Silkyarn(Synth&Arti)
FertilizerManufactured
Insecticides
Plasticmaterial
Iron&steelandScrap
Iron&steel
OtherChemicalProducts
F.Telecom
G.Others
Total
ExcludingPetroleumGroup
ExcludingPetroleum&FoodGroups
*Provisional

($Million)
JulyApril
200809
200910
3,404.6
2,813.3
1,411.4
1,502.2
655.9
553.3
755.5
948.9
6,454.9
6,549.6
477.5
492.4
238.9
290.4
241.2
286.4
494.4
691.1
81.0
120.4
943.4
978.2
527.1
369.0
1,090.8
1,018.1
2,360.7
2,303.5
857.1
598.7
4,285.6
4,673.0
28,921.3
28,122.6
20,904.3
20,004.0
17,364.4
17,219.0

%Change
17.4
6.4
15.6
25.6
1.5
3.1
21.5
18.7
39.8
48.7
3.7
30.0
6.7
2.4
30.1
9.0
2.8
4.3
0.8

Absolute
Increase
591.4
90.9
102.5
193.4
94.6
14.9
51.5
45.2
196.8
39.5
34.8
158.2
72.6
57.1
258.4
387.4
798.8
900.3
145.5

%Share
10.0
5.3
2.0
3.4
23.3
1.8
1.0
1.0
2.5
0.4
3.5
1.3
3.6
8.2
2.1
16.6
100.0
71.1
61.2
Source:FBS

The effect of lower international prices compared to previous years imports in the decline of overall
importbillofthecountryisexhibitedintablebelow.AsitcanbeanalyzedthatPakistangained$1,185.9
million due to fall in import price of palm oil, petroleum products, petroleum crude, fertilizer, plastic
materialandiron&steelduringJulyApril200910comparedtoimportatlastyearsprices(seeTable
7.7). Import bill during the period under review could have been inflated by $ 1,185.9 million if the
pricesofitemsshownintable8.8beremainedatparwithlastyearsprices.
Table7.7:ImportBillasaResultoftheChangeinImportPrices(July April200910*)
($Million)
Actual
ImportsatLast
Commodity
AdditionalBill(Gains/Losses)
Imports
YearsPrices
SoyabeanOil
13.7
12.7
1.0
PalmOil
1,041.4
1,104.6
63.1
PetroleumProducts
5,305.3
5,725.3
420.0
PetroleumCrude
2,813.3
3,069.7
256.5
Fertilizer
691.1
909.7
218.6
PlasticMaterial
978.2
1,193.3
215.1
MedicinalProducts
611.5
608.7
2.8
Iron&Steel
1,018.1
1,034.5
16.3
Total
12,472.6
13,658.5
1,185.9
*Estimated
Source:FBS

Concentration of imports in terms of its composition suggests that raw material for consumer goods
dominates the composition of imports of the country (see table 7.8) and its share has gradually been
increasing since 200506. The share of capital and consumer goods remained constant during July
March200910overthesameperiodlastyear.
98

BalanceofPayments
Table7.8:CompositionofImports
Year

CapitalGoods

200506
200607
200708
200809
JulyMarch
200809
200910
*Provisional

37
36
29
29
28
28

(%Share)
RawMaterialfor
CapitalGoods
ConsumerGoods
7
45
7
47
8
53
9
49
9
7

Consumer
Goods
11
10
10
13

50
52

13
13

Total
100
100
100
100
100
100
Source:FBS

7.3aDirectionofImports
Most of Pakistans imports are concentrated in few numbers of market in the world namely Saudi
Arabia, Kuwait, Malaysia, U.S.A, Japan, Germany, and U.K. Data for JulyMarch 200910 exhibits that
almost36.0percentoftotalimportmarketsofPakistanconsistsofthesesevencountries(seeTable7.9).
SaudiArabiahasheldthelionshareinPakistansimportswithinmarketssince200304.However,signs
of market diversification are present as the combined share of these major export partners has been
decliningfromashighas43percentin200304tocurrentlevels.
Table7.9:MajorSourcesofImports
Country

0304

0405

0506

0607

0708

0809

U.S.A.
Japan
Kuwait
SaudiArabia
Germany
U.K.
Malaysia
SubTotal
OtherCountries
Total
*Provisional

8.5
6.0
6.4
11.4
3.9
2.8
3.9
42.9
57.1
100.0

7.6
7.0
4.6
12.0
4.4
2.6
2.6
40.8
59.2
100.0

5.8
5.6
6.2
11.2
4.7
2.8
3.0
39.3
60.7
100.0

7.5
5.7
5.7
11.4
3.9
2.3
3.1
39.6
60.4
100.0

6.1
4.6
7.5
13.4
3.2
1.9
3.9
40.6
59.4
100.0

5.4
3.6
6.6
12.3
3.8
2.6
4.6
38.9
61.1
100.0

(PercentageShare)
JulyMarch
0809
0910*
5.0
4.9
3.6
4.3
7.2
6.0
12.3
10.2
3.8
3.7
2.7
1.7
4.5
5.1
39.1
35.9
60.9
64.1
100.0
100.0
Source:FBS

7.4TermsofTrade
Afterwitnessingthepersistentdeteriorationsince199899,Pakistanhaswitnessedanimprovementof
2.8 percent in its terms of trade during 200809. This showed the impact of decreased prices of
international prices of commodity and oil. This improvement in countrys terms of trade also
contributed inthedeclineofcurrentaccountdeficitduringthe periodunderreview.However,during
JulyMarch 200910, terms of trade could not sustain the process of improvement which started in
200809duetoincreaseinunitvalueindexofimportsandstagnationinunitvalueindicesduringJuly
March 200910 over the comparable period last year (see Table 7.10). As a result, countrys terms of
tradeaggregatedto54.9duringJulyMarch200910ascomparedto56.3ofJulyMarch200809thereby
witnessedadeteriorationof2.5percentduringtheperiodunderreview.Althoughthisdeclineinterms
oftradeduringcurrentfiscalyearof200910islowesteversince200203.

99

EconomicSurvey200910
Table7.10:UnitValueIndicesandTermsofTrade(Baseyear199091=100)
UnitValueIndices
Year
Exports
Imports
200506
299.3
460.4
200607
310.0
495.3
200708
350.4
632.3
200809
450.4
790.8
JulyMarch
200809
454.9
808.1
200910*
454.9
828.4
*Provisional

TermsofTrade
65.0
62.6
55.4
57.0
56.3
54.9
Source:FBS

7.5SummaryofBalanceofPayments
PakistansCurrentAccountDeficit(CAD)narroweddownby65.9percentasaresultCADdeclinedto$
3.06billioninJulyApril200910asagainst$8.98billionlastyear(seeTable.7.11).ThisdeclineinCAD
during JulyApril 2010 was contributed by the improvement in trade, services, income & current
transfers during the period. Specifically, decline in imports and a strong increase in current transfers
playedafundamentalroleinbringingdownthecurrentaccountdeficit.Fallinpaymentsonaccountof
repatriation of dividends, interest on debt, freight on merchandise imports and lower outflows from
foreign exchange companies were other contributory factors behind the contraction in the current
accountbalanceduringtheperiodunderreview.
Decline in trade deficit is due mainly to a fall in imports complimented by overall improvement in
exports during JulyApril 200910. The trade deficit improved by 18.3 percent during this period.
Improvementininvisibleaccountsemanatedfromthesignificantdeclineinservicesandincomeaccount
deficitwithimpressivegrowthinworkersremittances.
Theimprovementinincomeaccountisbasedonadeclineininvestmentincomeoutflows&fallinnet
interestpayments.Incomeaccountdeficitdeclinedby29.9percentduringJulyApril200910overthe
sameperiodlastyear.Thedeficitinservicestradeshrankby39.9percentduringJulyApril200910over
thecorrespondingperiodlastonthebackof15.3percentgrowthinservicesexportsand12.2percent
declineinservicesimports.Theincreaseinservicesexportsismainlyledbycommunication,financial,
government and other business services. Among these four groups, communication services exports
exhibitedsignificantgrowthof80.2percentduringJulyApril200910overthecorrespondingperiodlast
year. This growth in communication services exports was mainly owed to step taken by Pakistan
TelecomAuthority(PTA)tocurbillegaltrafficinthecountry.
While transportation and travel remained major categories among the all groups of services export,
thesesectorsregisterednegativegrowthduringJulyApril200910.Astheshareoftransportationand
travel in overall services exports declined by 9.0 percentage points and 2.1 percentage points
respectivelyduringJulyApril200910overthecorrespondingperiodlastyear.Transportationservices
exports declined by 13.9 percent during JulyApril 200910. Lower passage & freight earnings and
reduced local operations of foreign transport companies remained the key factors behind the overall
declineinthetransportationservicesexports.

100

BalanceofPayments
Table7.11:SummaryBalanceofPayments
Items
CurrentAccountBalance
Tradebalance
Goods:Exports
Goods:Imports
ServicesBalance
Services:Credit
Services:Debit
IncomeAccountBalance
Income:Credit
Income:Debit
CurrentTransfersNet
Ofwhich:
Workersremittances
Capital&FinancialAccount
CapitalAccount,
FinancialAccount
DirectInvestmentAbroad
DirectInvestmentinPakistan
PortfolioInvestment(Net)
OtherInvestment
NetErrorsandOmissions
OverallBalance
ReservesandRelatedItems
ReserveAssets
UseofFundCreditandLoans
ExceptionalFinancing
*:Provisional

JulyJune
200708
200809
13,874
9,252
14,970
12,627
20,427
19,121
35,397
31,747
6,457
3,381
3,589
4,106
10,046
7,487
3,923
4,407
1,613
874
5,536
5,281
11,476
11,163
6,451
8,252
121
8,131
75
5,410
32
2,764
257
5,365
5,365
5,538
173
0

7,811
6,058
474
5,584
25
3,720
1,073
2,962
138
3,056
3,056
635
3,691
0

($Million)
JulyApril
200809
200910*
8,982
3,060
11,136
9,094
15,817
16,155
26,952
25,249
3,218
1,962
3,126
3,605
6,344
5,567
3,667
2,570
759
474
4,426
3,044
9,039
10,566

6,356
7,307
4,495
3,942
162
239
4,333
3,703
13
11
3,205
1,773
1,002
46
2,143
1,965
230
152
4,257
730
4,257
730
496
2,159
3,761
1,106
0
323
Source:SBP

As against the current account, decline in financial account surplus, which emerged in 200708,
continued in JulyApril 200910 as well. Specifically, financial account surplus recorded a yearonyear
fallof14.5percentduringJulyApril200910comparedtosameperiodlastyear.
The quarterly trend shows that after recording surplus in first quarter of 200910, surplus in financial
accountfelldrasticallyinthesubsequentquarters,andturnedtodeficitinthirdquarterof200910.The
deficitinthefinancialaccountisattributedtolowerloaninflowsandthematurityofsovereignfinancial
instrument (Sukuk worth $ 600 million). The fall in financial account surplus would have been even
higher,haditnotbeenfornonrecurringSDRSallocationbytheIMF.
Moreover,foreigninvestorsriskaversenessamidglobalcrisisandseverepowerdeficitinPakistanled
to significant fall in foreign direct investment. The major sectors that recorded decline included
communication,financialbusinessandoil&gasexploration.
On the positive side, foreign investment in stock market has revived significantly during the period
underreview.However,theseinflowsareshortterminnatureandnotoriouslyvolatile.
Quarterlyanalysisshowsthatthecurrentaccountdeficitimprovedby86.0percentinthefirstquarter
101

EconomicSurvey200910

(JulySeptember)ofthecurrentfiscalyear200910overthesameperiodlastyear.Inspiteofthatthe
processofimprovementincurrentaccountdeficitsloweddowninremainingperiodoftheyear.Asthe
yearonyear CAD in second quarter (OctoberDecember 2009) improved by 57.0 percent during the
period. While the third quarter (JanuaryMarch) of the year 200910 exhibits a deterioration of 36.0
percent over the comparable period last year. Fall in invisible surplus and increase in imports
contributedthemajorroleintheoverallquarterlypositionduringtheperiodunderreview.Inaddition
tothattheyearonyeardeteriorationinlaterperiodwasalsoowedtoeliminationofbaseeffect,which
kept the yearonyear contraction substantially up to first quarter of 200910. However, an
improvement in the current account deficit for the month of April 2010 is estimated at almost 59
percentoverthesamemonthlastyear.
Monthly analysis shows the in the months of August 2009 and September 2009, the Current Account
Balance(CAB)witnessedasurplusof$10millionand$48millionrespectively.Nevertheless,monthly
CABexhibitsthedeficitintheremainingmonthsofcurrentfiscalyear200910whileadeficitof$185
millionhasbeenwitnessedinApril2010.
7.5aForeignDirectInvestment(FDI)

US$million

According to UNCTAD, the global inflows of foreign

Fig5:ForeignDirectInvestment
directinvestmentdeclinedbycloseto40.0percentin
6000
year 2009 due to global financial and economic
crises. The impact of this crisis transmitted in the
5000
global FDI through decline in the firms tendency to
4000
invest due to its falling profitability, higher
uncertainty & risk aversion behaviour and reduced
3000
availabilityoffinancetofirmsgloballytherebymany
2000
companies reduced their investment plans. Pakistan
also witnessed the declining FDI according to global
1000
FDIs trend during the period under review. As after
0
growing at an average rate of 61.0 percent per
annum for four years, Pakistans FDI declined
abruptly by 31.2 percent in 200809 compared to
Source:SBP
same period last year. This situation further
deterioratedinthecurrentfiscalyearowingtoacombinationofinternalfactorslikeenergycrisesand
law & order situation along with external factors of global economic slowdown. FDI in the country
declinedby44.7percentduringtheperiodofJulyApril200910comparedtosameperiodlastyear(see
Fig5).
OilandGasExplorationremainedthemajorattractivesectorforinvestmentasduetoitsshareof34.1
percentinoverallFDIinJulyApril200910.However,investmentinoilandgasexplorationswitnessed
negativegrowthrateduringJulyApril200910overthecomparableperiodlastyear.Thisperformance
mainlyresultedduetolawandordersituationforoilandgasexploration.
7.5bRemittances
AccordingtoWorldBankestimates,growthinworldremittancesduring2009declinedby6.7percenton
thebackofglobalfinancialcrisistherebymakingitdifficultforremittancesenders(seeFig6).However,
number of countries received a higher level of remittances during 2009 against the previous year of
2008. Specifically, remittances flow to Asian countries remained stronger during the period under
102

BalanceofPayments

review.WithinAsia,theconcentrationofhigherremittancesremainedintheSouthAsiaregionwhere
remittancesincreasedby4.9percentin2009.

30.0
20.0
10.0
0.0
Kazakhstan

Turkey

Mexico

UnitedKingdom

World

Malaysia

Thailand

Nepal

Philippines

SriLanka

20.0

Bangladesh

10.0

Pakistan

Morerecently,Workerremittancesto Pakistanhave
surgedby15.0percentduringJulyApril200910over
the corresponding period last year. With the
exceptionofFebruary2010,positivegrowthhasbeen
witnessed in all other months of current fiscal years
200910overthecorrespondingmonthsoflastyear.
The month of October 2009 witnessed a highest
growthof62.7percentduringtheperiod.

Fig6:RemittancesGrowthin2009

%Growth

Remittances to Pakistan witnessed strong growth of

23.9 percent during 2009 over previous year 2008
followed by Bangladesh (19.4 percent), Sri Lanka
(14.2 percent), Nepal (13.2 percent) and Philippines
(5.6percent).

30.0
40.0
Source:WorldBank

Countrywise data suggests that UAE remained the

majorcontributortoremittancesincreaseduringJulyApril200910contributing22.8percentoftotal
remittance,followedbySaudiArabia(20.9percentor$1,525.9million),USA(20.0percentor$1,461.8
million),OtherGCCcountries(14.1percentor$1,033.0million)andUK(10.1percentor$734.6million)
(seeTable7.12).
While UK & UAE witnessed highest growth rate of 57.0 percent and 21.7 percent respectively during
JulyApril200910overcorrespondingperiodlastyear.HigherremittancefromUKseemstotheresult
of aggressive bilateral tieups of commercial banks with foreign entities under Pakistan Remittances
Initiative(PRI)program.
Table7.12:Country/RegionWiseCashWorkersRemittances
JulyApril
JulyApril*
Country/Region
200809
200910
USA
1,435.7
1,461.8
UK
468.0
734.6
SaudiArabia
1,264.1
1,525.9
UAE
1,366.8
1,663.2
OtherGCCCountries
996.0
1,033.0
EUCountries
196.5
210.2
OthersCountries
498.1
481.7
Total
6,355.6
7,306.7
*Provisional

($Million)
%Change

%Share

1.8
57.0
20.7
21.7
3.7
7.0
3.3
15.0

20.0
10.1
20.9
22.8
14.1
2.9
6.6
100.0
Source:SBP

ThepossiblefactorsbehindhigherremittancesfromUAEare:a)diversionofapartofremittancesfrom
informal to formal channels as is evident from trend shift following the crackdown on illegal fund
transferandassetpricescrisesinDubaiduetowhichinvestmentwasdivertedtoPakistanintheformof
remittances by Pakistani migrants who lost their jobs in Dubai, and b) increased outreach of banks
havingarrangementswithoverseasentities.
While some migrants found jobs in Abu Dhabi, as a result, remittances from Abu Dhabi witnessed an
103

EconomicSurvey200910

increaseof80.62percentduringJulyApril2009overthecomparableperiodlastyear.
Channelwisedatasuggeststhatmostoftheremittanceswereroutedthroughbankingchannelduring
JulyApril 200910. This improvement largely reflects the initiatives taken under Pakistan Remittances
Initiative (PRI) to encourage the migrants to route their remittances through banking channel. This is
becauseoffearoffundsbeingstuckupinaneventofactionagainsttheexchangecompany,increased
competitionaslikeexchangecompaniesbanksarealsohavingtieupwithforeignentities,lowercosts
as sending funds through banks is free of charges and efforts such as PRI to attract funds through
bankingchannel.
Box2:PakistanRemittancesInitiative
To facilitate and increase the flow remittances through formal channels the Ministry of Finance, Ministry of
OverseasPakistanisandStateBankofPakistantooktheinitiativeoflaunchingPakistanRemittanceInitiative(PRI)
throughwhichdifferentincentivehavebeenofferedinfiscalyear200910tosenderandreceiverofremittance
throughbankingchannel.Theseincentives/measuresarefollowedas:
Increasingtheoutreachofbankswithforeignentities.
TransferringofremittancesinbeneficiarybankaccountonsamedaythroughintroducingtheRealTimeGross
Settlement(RTGS).
Reimbursement of marketing expenses as percent of remittances mobilized by an overseas entity from any
onejurisdiction.Thispercentofreimbursementvariesaccordingtoamountmobilizedwhichfollowsas:0.50
percentonincrementalamountonremittancesmobilizedabove$100millionto$400million,0.75percenton
incrementalamountonremittancesmobilizedabove$400millionto$800million,1.0percentonincremental
amount on remittances mobilized above $800 million to $1200 million, 1.0 percent on total remittances
mobilizedabove$1200million.
After launching of PRI, the Memorandum of Understanding has been signed between Pakistan Remittance
InitiativeandPakistanInternationalAirlinesinwhichmoreincentivesandprivilegeshavebeenofferedtooverseas
Pakistanis like one hundred free return air tickets through lucky draws, reserve seats, special gifts in flights,
businessclassservicesatcheckincounters,businessclassloungesandexcessbaggageallowance.

7.5cForeignExchangeReserves
Afterdecliningby27.0percentduringthefiscalyear200708,Pakistanstotalliquidforignexchange
reserves(endperiod)witnessingthesignificantincreaseinthesubsequentperiodsof200809andJuly
April200910(seeFig7).Themajorreasonsbehindthefallinreservesduring200708remainedthenet
outflowsfromportfolioinvestmentandstepriseinthe currentaccountdeficitledtosharpdeclinein
theforeignexchangereservesofthecountry.Furthermoe,therecoveryinthereservesduring200809
was contributed by inflows from IMF following Pakistans entry into a macroeconomic stablization
programandthanafteraditionfromotheragenciescapitalinflowinthecountry.Inaddditiontothat
the narrowed down of current account deficit also significantly contributed in the improvement of
reservepositionofthecountryduringtheperiod.
Morerecently,Pakistansforeignreservesincreasedsubstantiallyfrom$12.4billioninendJune2009to
$ 15.0 billion in endApril 2010 (see Fig 7). This improved position of reserves benefited from lower
currentaccountdeficitandhigherremittances.Improvementinreservesbroughtrelativestabilityinthe
exchangerateandsubsequentincreaseinforeigncurrencydeposits.
Quarterlyanalysisshowsthatbulkofaccumulationinreserveswasconcentratedinfirstquarterof2009
104

BalanceofPayments

10,whilereservesincreasedonlymarginallyinthesubsequentquarters.Thisisbecauseasubstantive
partoftheriseinreservesduringfirstquarterof200910owedtoSDRsallocationanddisbursementby
IMFunderSBA.ThereservesheldbytheStateBankofPakistanstoodat$11.2billionwiththebanking
systemholding$3.9billioninreservesbyendApril2010.ImprovementintheSBPsreservesduringthe
periodmainlyowedtoinflowsfromIFIs,lowercurrentaccountdeficitandreducedmarketsupport.The
riseincommercialbanksreserveswasprimarilyonaccountofincreasedforeigncurrencydepositsand
retirementsofforeigncurrencyloans.Increaseinbothofthemwasowingtoexpectationofexchange
ratedepreciation.
Owing to improved position of reserves and decline in imports, the import coverage ratio increased
from21.1weeksasofendJune2009to26.5weeksinMarch2010.
Fig7:EndPeriodTotalLiquidForeignExchangeReserves
16,000

MillionUS$

15,000
14,000
13,000
12,000
11,000
10,000
200405

200506

200607

200708

200809

JulApr0910
Source:SBP

7.6ExchangeRate
Afterremainingatstablepositionformorethanfouryears,Pakrupeestartedtolosesignificantvalue
againstUSdollaranditdepreciatedby22percentintheperiodofJanNov2008.Thisdepreciationwas
attributedtofactorslikesubstantiallossofforeignexchangereserves,politicaluncertainty,speculative
activities in foreign exchange markets and trade related outflows. Due to Pakistans entry in standby
agreementwithInternationalMonetaryFund(IMF)inNovember2008alongwithmarketconditionsat
that time, Pakistan adopted a more flexible exchange rate regime. After shift towards more flexible
exchange rate regime, country witnessed a slow down in exchange rate depreciation of 2.5 percent
duringDecJun200809.
More recently, owing to the overall external account improvement and stable reserve position,
PakistanscurrencyvisvisUSdollardepreciatedby3.9percentduringJulyMarch200910compared
to sharp decline of 16.2 percent in the corresponding period last year.Volatility in the kerbmarket
however, remained substantial throughout the JulyMarch 200910 period, initially on account of Hajj
relateddemandandlaterduetoshiftingofoilpayments.DemandfortheUSdollarinthekerbmarket
wasparticularlyhighinJanuaryandFebruary2010,whichledtosubstantialriseinkerbpremiumand
volatilityintheexchangerate(seeTable7.13).
The improvement in inflows on account of portfolio investment and workers remittances backed Pak
rupee,consequently,PakrupeeregainedsomeofthegrounditlostinFebruary.Rupeeappreciatedby
1.01percentvisvisUSdollarbetweenendFebruaryandendMarch2010.
105

EconomicSurvey200910

The rupee showed relatively better performance against the Euro and Pound. Euro and Pound
depreciatedby1.8percentand6.3percentrespectivelyagainstPakrupeeduringJulyMarch200910.
Rupees appreciation against Euro and Pound was primarily driven by the relative strength of dollar
againstEuroandPound,andPakrupeestabilityagainsttheUSdollarduringtheperiodunderreview.
Table7.13:AverageExchangeRatesandPremium

InterBankRate
OpenMarketRate
(Rs/$)
(Rs/$)
July09
82.22
82.40
August
82.9
82.98
September
82.94
82.86
October
83.31
83.41
November
83.55
83.72
December
84.11
84.31
January10
84.63
85.37
February
84.97
86.17
March
84.41
84.68

Premium(%)
0.18
0.08
0.08
0.10
0.17
0.20
0.74
1.20
0.27

Rs/Euro
115.71
118.16
120.49
123.35
124.54
122.88
120.78
116.24
114.61
Source:SBP

Furthermore,NominalEffectiveExchangeRate(NEER)witnessed4.6percentdepreciationduringJuly
March2010ascomparedtodepreciationof6.4percentduringthesameperiodlastyear.However,due
to rise in inflationary pressures as evident from the 8.7 percent increase in Relative Price Index, Real
EffectiveExchangeRate(REER)appreciatedby3.5percentduringJulyMarch200910(seeFig8).
Fig8:RealEffectiveExchangeRate(REER)
REERIndex(2000=100)

100
98
96
94
92
90
88
86
Source:SBP

7.8SalientFeaturesofStrategicTradePolicyFramework200912
Realizing the need for developing and effectively implementing a national export competitiveness
programme, the Ministry of Commerce has developed a three year Strategic Trade Policy Framework
(STPF) 200912. The overall objective of the STPF is to achieve sustainable high economic growth
through exports with the help of policy and support interventions by the government, industry, civil
societyanddonors.
The STPF 200912 is based on six pillars namely Supportive Macro Policies and Services, Enhancing
106

BalanceofPayments

Product Sophistication level in Pakistans Exports, Enhancing Firm level Competitiveness, Domestic
Commerce Reform and Development, Product and Market Diversification and Making Trade Work for
theSustainableDevelopmentinPakistan.Moreover,MinistryofCommercehassettheexportgrowth
targetof6.0percentfor200910and10.0percentand13.0percentforeachofthesuccessiveyears.
Themajormeasurestoachievetheaboveobjectivesare:
x Supportforopeningexportersofficesabroad.
x Inpreviousyears,governmentannounced50percentsupportforvariousquality,environmental
andsocialcertifications.Thesupportwasprogressivelyincreasedto100percentofthecostof
certification.
x It is proposed that surgical instruments, sports goods & cutlery sector would be granted 25
percentsubsidyonbrandpromotionalexpenseslikeadvertisementinrecognizedtradejournals,
certificationcostetc.
x Inordertoincreasethesophisticationlevel&realizetruepotentialoflightengineeringsector,a
special fund would be created for product development & marketing for light engineering
sector.
x Leather apparel exporters would be provided 50 percent subsidy for on the floor expert
advisory/consultancyand matchinggrantto establishdesignstudiosordesign centresin their
factories.
x Afreightsubsidyat25percentwouldbeextendedonairshipmentsofliveseafoodproducts.
x Processed food exports would be supported initially by reimbursing research &development
costat6percentoftheexports.
x Sharing 25 percent financial cost of setting up of design centres and labs in the individual
tanneries.
x Industrialimporterswouldbeallowedtoimportnew,refurbishedandupgradedmachineryon
thebasisoftradeinwiththeirold,obsoletemachinery.Likewise,exportoftheirold/obsolete
machineryfortradeinwithnew,refurbishedorupgradedmachinerywouldalsobeallowed.
x The natural pearls and other synthetic or reconstructed precious or semi precious stones are
beingincreasinglyusedinjewelleryproducts;theywouldalsobeexemptedfromcustomsduty
andsalestax.
x Limitforphysicianssampleswouldbeenhancedto20atthetimeoflaunchwithfirstshipment.
x EngineeringunitswouldbeallowedExportOrientedUnits(EOU)facilityonexportof50percent
oftheirproductionforthefirstthreeyears.Afterthat,engineeringunitswouldbeallowedthis
facilityonexportof80percentoftheirproduction.
x Inordertoencourageuseofcomputersbylowincomesegmentofpopulation,theimportofold
&usedcomputercomponentswouldbeallowed.

107

TABLE 7.1
BALANCE OF PAYMENTS

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

(US $ Million)
July-March
2008-09 2009-10 P

-294

-444

-1,208

-4,352

-8,259

-9,495

-14,820

-12,492

-10,144

-8,024

9,140
9,434

10,889
11,333

12,396
13,604

14,401
18,753

16,388
24,647

17,119
26,614

20,207
35,027

18,918
31,410

14,159
24,303

14,218
22,242

-2,617

-2,128

-3,594

-5,841

-7,304

-7,968

-10,530

-7,922

-6,420

-4,175

Receipts
Payments
Shipment
Investment Income
Others

2,027
-4,644
-809
-2,430
-1,405

2,967
-5,095
-951
-2,381
-1,763

2,894
-6,488
-1,253
-2,394
-2,841

3,837
-9,678
-1,713
-2,823
-5,142

4,718
-12,022
-2,203
-3,451
-6,368

5,239
-13,207
-2,337
-4,522
-6,348

5,422
-15,952
-3,087
-5,536
-7,329

5,183
-13,105
-2,740
-5,281
-5,084

3,706
-10,126
-2,153
-4,045
-3,928

3,619
-7,794
-1,994
-2,700
-3,100

3. Private Unrequired
Transfers (net)
(Workers Remittances)
4. Current Account Balance

4,249
2,389
1,338

5,737
4,237
3,165

6,116
3,871
1,314

8,440
4,168
-1,753

9,914
4,600
-5,649

10,102
5,494
-7,361

11,048
6,451
-14,302

11,019
7,811
-9,395

8,075
5,658
-8,489

9,305
6,551
-2,894

5. Long-term Capital (net)

1,280

1,035

-201

2,562

6,016

10,006

8,427

6,448

4,758

5,031

-177
1,457

225
810

691
-892

1,221
1,341

4,153
1,863

7,826
2,180

6,187
2,240

3,805
2,643

3,178
1,580

1,954
3,077

2,618

4,200

1,113

809

367

2,645

-5,875

-2,947

-3,731

2,137

961

909

-137

-854

36

527

-676

310

234

-569

3,579

5,109

976

-45

403

3,172

-6,551

-2,637

-3,497

1,568

-925

-520

-95

472

470

1,051

679

-611

-536

-840

-334

-180

-317

147

-193

-83

559

-151

-68

-145

-591
138

-340
620

222
-55

335
-55

663
-55

1,134
100

120
0

-460
0

-468
0

-695
-100

-826
-372
(P) : Provisional

-818

-4,323

5,872

Items
1. Trade Balance
Exports (f.o.b)
Imports (f.o.b)
2. Services (Net)

Private Capital (net)

Official Capital (net) @
6. Basic Balance
7. Errors and Omissions (net) *
8. Balance Requiring Official
Financing
9. Official Assistance &
Debt Relief
Medium and ShortTerm Capital
Other Short-Term Assets/
Liabilities FEBC, DBC
FEBC, Euro & Special
US $ Bonds (Net), GDR(OG)
10 Exceptional Financing

11. Change in Reserves

( - ve = increase )
-2,792
@ : Includes Official Unrequited Transfers
* : Includes Private Short-term Capital

-5,209

3,249
4,033
-628
Source : State Bank of Pakistan

Table 7.2
SUMMARY OF BALANCE OF PAYMENTS
Item
Current account balance
Current account balance without off. Transfers

2006-07

2007-08

2008-09

-6,878

-13,874

-9,252

(Millions US $)
July-March
2008-09
2009-10
-8,379
-2,702

-7,403

-14,302

-9,424

-7,924

-2,111

Goods: Export f.o.b

17,278

20,427

19,121

14,321

14,389

Goods: Imports f.o.b

-26,989

-35,397

-31,747

-24,582

-22,413

Trade Balance

-9,711

-14,970

-12,626

-10,261

-8,024

Services (Net)

-4,170

-6,457

-3,381

-2,951

-1,907

Services: Credit

4,140

3,589

4,106

2,851

3,016

Services: Debit

-8,310

-10,046

-7,487

-5,802

-4,923

Income (Net)

-3,582

-3,923

-4,407

-3,352

-2,268

Income: Credit
Income: Debit
of Which: Interest Payments

940

1,613

874

693

432

-4,522

-5,536

-5,281

-4,045

-2,700

1,417

2,175

1,915

1,480

1,073

Current Transfer (Net)

10,585

11,476

11,163

8,186

9,497

Capital Account and Financial Account

10,276

8,252

6,060

4,421

3,724

304

121

474

138

187

Financial Account

9,972

8,131

5,586

4,283

3,537

Dir. Invest. In Rep. Econ.

5,140

5,410

3,720

3,042

1,554

Capital Account

Other Investment Assets

Other Investment Liab.
Monetary Authorities

-758

32

560

592

-257

2,421

2,732

2,404

1,613

2,415

-1

490

-1

-1

1,250

General Government
Disbursement

2,444

2,354

2,936

1,920

2,263

Amortization

-1,031

-1,131

-1,389

-1,067

-993

Net errors and omissions

Reserve and Related Items

179

257

136

-33

-107

-3,577

5,365

3,056

3,990

-915

Source: State Bank of Pakistan

TABLE 7.3
COMPONENTS OF BALANCE OF PAYMENTS (AS PERCENT OF GDP)
Exports ^

Imports ^

Trade
Deficit ^

Worker's
Remittances #

Current
Account
Deficit #

1980-81
1981-82
1982-83
1983-84
1984-85

10.5
8.0
9.4
8.9
8.0

19.3
18.3
18.7
18.3
19.0

8.7
10.3
9.3
9.4
11.0

7.5
7.2
10.1
8.8
7.9

3.7
5.0
1.8
3.2
5.4

1985-86
1986-87
1987-88
1988-89
1989-90

9.6
11.1
11.6
11.7
12.4

17.7
16.1
16.7
17.6
17.4

8.0
5.1
5.0
5.9
4.9

8.1
6.8
5.2
4.7
4.9

3.9
2.2
4.4
4.8
4.7

1990-91
1991-92
1992-93
1993-94
1994-95

13.5
14.2
13.3
13.1
13.5

16.7
19.1
19.4
16.6
17.2

3.3
4.8
6.1
3.4
3.7

4.1
3.0
3.0
2.8
3.1

4.8
2.8
7.2
3.8
4.1

1995-96
1996-97
1997-98
1998-99
1999-00

13.8
13.4
13.9
13.3
11.7

18.7
19.1
16.3
16.1
14.1

4.9
5.7
2.4
2.8
2.4

2.3
2.3
2.4
1.8
1.3

7.2
6.2
3.1
4.1
1.6

15.1
14.4
14.8
15.9
18.5
22.5
21.2
24.4
21.5

2.1
1.7
1.3
3.3
5.5
9.5
9.4
12.8
10.6

1.5
3.3
5.1
3.9
3.7
2.9
3.8
3.9
4.8

0.7
+1.9
+3.8
+1.3
1.6
4.5
5.1
8.5
5.7

16.0

7.0

Year

2000-01
12.9
2001-02
12.8
2002-03
13.5
2003-04
12.5
2004-05
13.0
2005-06
13.0
2006-07
11.8
2007-08
11.6
2008-09
10.9
Jul-April
2009-10 *
9.1
^ : Based on the data compiled by FBS
# : Based on the data compiled by SBP
* : Provisional

4.2
1.7
Source: FBS, SBP & E.A.Wing, Finance Division

TABLE 7.4
EXPORTS, IMPORTS AND TRADE BALANCE

Year

(Rs million)
Current Prices
Exports Imports Balance

Growth Rate (%)

Exports Imports Balance

(US $ million)
Current Prices
Exports Imports Balance

Growth Rate (%)

Exports Imports Balance

1980-81
1981-82
1982-83
1983-84
1984-85

29,280
26,270
34,442
37,339
37,979

53,544
59,482
68,151
76,707
89,778

-24,264
-33,212
-33,709
-39,368
-51,799

25.07
-10.28
31.11
8.41
1.71

14.10
11.09
14.57
12.55
17.04

3.17
36.88
1.50
16.79
31.58

2,958
2,464
2,694
2,768
2,491

5,409
5,622
5,357
5,685
5,906

-2451
-3158
-2663
-2917
-3415

25.07
-16.70
9.33
2.75
-10.01

14.11
3.94
-4.71
6.12
3.89

3.20
28.85
-15.67
9.54
17.07

1985-86
1986-87
1987-88
1988-89
1989-90

49,592
63,355
78,445
90,183
106,469

90,946
92,431
112,551
135,841
148,853

-41,354
-29,076
-34,106
-45,658
-42,384

30.58
27.75
23.82
14.96
18.06

1.30
1.63
21.77
20.69
9.58

-20.16
-29.69
17.30
33.87
-7.17

3,070
3,686
4,455
4,661
4,954

5,634
5,380
6,391
7,034
6,935

-2564
-1694
-1936
-2373
-1981

23.24
20.07
20.86
4.62
6.29

-4.61
-4.51
18.79
10.06
-1.41

-24.92
-33.93
14.29
22.57
-16.52

1990-91
1991-92
1992-93
1993-94
1994-95

138,282
171,728
177,028
205,499
251,173

171,114
229,889
258,643
258,250
320,892

-32,832
-58,161
-81,615
-52,751
-69,719

29.88
24.19
3.09
16.08
22.23

14.96
34.35
12.51
-0.15
24.26

-22.54
77.15
40.33
-35.37
32.17

6,131
6,904
6,813
6,803
8,137

7,619
9,252
9,941
8,564
10,394

-1488
-2348
-3128
-1761
-2257

23.76
12.61
-1.32
-0.15
19.61

9.86
21.43
7.45
-13.85
21.37

-24.89
57.80
33.22
-43.70
28.17

1995-96
1996-97
1997-98
1998-99
1999-00

294,741
325,313
373,160
390,342
443,678

397,575
465,001
436,338
465,964
533,792

-102,834
-139,688
-63,178
-75,622
-90,114

17.35
10.37
14.71
4.60
13.66

23.90
16.96
-6.16
6.79
14.56

47.50
35.84
-54.77
19.70
19.16

8,707
8,320
8,628
7,779
8,569

11,805
11,894
10,118
9,432
10,309

-3098
-3574
-1490
-1653
-1740

7.01
-4.44
3.70
-9.84
10.15

13.58
0.75
-14.93
-6.78
9.30

37.26
15.36
-58.31
10.94
5.26

627,000
-87,930
634,630
-73,683
714,372
-62,078
897,825
-188,789
1,223,079
-368,991
1,711,158
-726,317
1,851,806
-822,494
2,512,072 -1,315,434
2,723,570 -1,339,852

21.50
4.06
16.28
8.70
20.46
15.31
4.52
16.26
15.63

17.46
-2.42
1.22 -16.20
12.57 -15.75
25.68 204.12
36.23 95.45
39.91 96.84
8.22 13.24
35.66 59.93
8.42
1.86

9,202
9,135
11,160
12,313
14,391
16,451
16,976
19,052
17,688

10,729
10,340
12,220
15,592
20,598
28,581
30,540
39,966
34,822

-1527
-1205
-1060
-3279
-6207
-12130
-13564
-20914
-17134

7.39
-0.73
22.17
10.33
16.88
14.31
3.19
12.23
-7.16

4.07
-3.63
18.18
27.59
32.11
38.76
6.85
30.86
-12.87

-12.24
-21.09
-12.03
209.34
89.30
95.42
11.82
54.19
-18.07

2,021,991
2,081,763

25.69
13.50

17.67
2.96

13,382
14,162

26,123
25,107

2000-01
539,070
2001-02
560,947
2002-03
652,294
2003-04
709,036
2004-05
854,088
2005-06
984,841
2006-07
1,029,312
2007-08
1,196,638
2008-09
1,383,718
July-Mar
2008-09
1,036,466
2009-10 (P) 1,176,388
P : Provisional

-985,525
-905,375

10.26
-8.13

-12741
-0.37
-6.57
-12.29
-10945
5.83
-3.89
-14.10
Source: FBS & E. A. Wing, Finance Division

TABLE 7.5
UNIT VALUE INDICES AND TERMS OF TRADE (T.O.T) (1990-91 = 100)
Groups

(Indices)
July-March
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
2008-09 2009-10

All Groups
Exports
253.77 271.47
Imports
259.03 298.44
T.O.T.
97.97
90.96
Food & Live Animals
Exports
234.95 249.32
Imports
248.38 278.82
T.O.T.
94.59
89.42
Beverages & Tobacco
Exports
143.34 171.44
Imports
532.21 698.92
T.O.T.
26.93
24.53
Crude Materials
(inedible except fuels)
Exports
169.85 192.12
Imports
198.06 218.95
T.O.T.
85.76
87.75
Minerals, Fuels & Lubricants
Exports
283.63 373.65
Imports
206.30 276.87
T.O.T.
137.48 134.96
Chemicals
Exports
276.51 282.36
Imports
208.54 228.06
T.O.T.
132.59 123.81
Animal & Vegetable
Oils, Fats & Waxes
Exports
Imports
229.68 195.10
T.O.T.
Manufactured Goods
Exports
266.96 279.04
Imports
224.61 251.50
T.O.T.
118.86 110.95
Machinery and Transport
Equipment
Exports
396.34 453.20
Imports
417.87 470.20
T.O.T.
94.85
96.38
Miscellaneous Manufactured Articles
Exports
263.04 292.47
Imports
278.99 323.02
T.O.T.
94.28
90.54
- : Not applicable
* : Provisional

271.18
298.56
90.83

254.02
309.52
82.07

279.65
355.43
78.68

288.84
392.45
73.60

299.31
460.38
65.01

310.03
495.33
62.59

350.40
632.30
55.42

450.40
790.82
56.95

454.93
808.09
56.30

454.89
828.42
54.91

260.55
277.41
93.92

258.11
259.76
99.36

267.55
282.18
94.82

303.93
314.36
96.68

327.47
323.95
101.09

350.75
431.20
81.34

496.58
551.25
90.08

758.42
622.23
121.89

614.28
619.79
131.38

679.29
687.05
98.87

169.82
790.14
21.49

146.52
598.00
24.50

175.33
521.88
33.60

162.96
561.23
29.04

191.13
621.67
30.74

208.44
675.14
30.87

202.67
653.41
31.02

431.15
884.26
48.76

372.70
860.45
43.31

599.47
953.43
62.87

158.90
228.14
69.65

171.58
232.37
73.84

218.86
245.01
89.33

195.64
293.06
66.76

209.97
329.71
63.88

225.52
350.19
64.40

328.53
445.35
73.77

494.08
813.16
80.58

493.21
643.89
76.60

554.09
663.78
83.47

314.40
249.66
125.93

365.14
297.20
122.86

416.09
306.38
135.81

525.75
389.16
135.10

644.33
615.00
104.77

733.54
632.08
116.05

979.83
877.47
111.67

840.26
982.09
85.56

281.54
239.29
117.66

270.05
245.60
109.96

265.61
313.15
84.82

277.23
334.10
82.98

312.89
372.17
84.07

362.50
392.87
92.27

397.29
471.77
84.21

480.24
659.24
72.85

484.32
611.09
79.26

224.82
-

300.36
-

347.94
-

358.48
-

341.40
-

406.00
-

647.28
-

793.22
-

866.17

281.83
244.97
115.05

248.93
240.82
103.37

274.02
287.80
95.21

284.72
301.00
94.59

289.58
340.71
84.99

300.76
375.06
80.19

318.97
427.60
74.60

387.90
559.24
69.36

390.80
549.29
71.15

385.68
609.37
63.29

579.13
481.18
120.36

572.31
450.67
126.99

396.09
537.55
73.68

342.97
561.15
61.12

414.01
538.14
76.93

430.91
580.85
74.19

518.62
639.86
81.05

806.33
897.85
89.81

799.29
858.50
93.10

982.15
960.34
102.27

298.40
320.35
93.15

294.67
299.60
98.35

318.55
333.22
95.60

324.17
343.13
94.47

342.71
404.94
82.59

340.99
418.65
81.45

430.84 486.51
351.77 442.64
666.29 962.00
605.24 763.29
64.66 50.57
58.12
57.99
Source: Federal Bureau of Statistics

871.98 1038.32
1090.38 942.65
79.97 110.15
523.12
717.12
72.95

873.15
-

TABLE 7.6
ECONOMIC CLASSIFICATION OF EXPORTS AND IMPORTS (A. EXPORTS)
(Rs million)
Year

Primary Commodities
Value
Percentage
Share

Semi-Manufactures
Value
Percentage
Share

Manufactured Goods
Value
Percentage
Share

Total
Value**

1970-71
1971-72
1972-73
1973-74
1974-75

650
1,510
3,366
4,007
4,933

33
45
39
39
48

472
914
2,583
2,294
1,308

24
27
30
23
13

876
947
2,602
3,860
4,047

44
28
30
38
39

1,998
3,371
8,551
10,161
10,286

1975-76
1976-77
1977-78
1978-79
1979-80

4,902
4,622
4,633
5,475
9,838

44
41
36
32
42

2,068
1,888
1,912
3,489
3,519

18
17
15
21
15

4,283
4,783
6,435
7,963
10,053

38
42
50
47
43

11,253
11,294
12,980
16,925
23,410

1980-81
1981-82
1982-83
1983-84
1984-85

12,824
9,112
10,326
10,789
10,981

44
35
30
29
29

3,320
3,507
4,618
5,172
6,664

11
13
13
14
17

13,136
13,651
19,498
21,378
20,334

45
52
57
57
54

29,280
26,270
34,442
37,339
37,979

1985-86
1986-87
1987-88
1988-89
1989-90

17,139
16,796
22,163
29,567
21,641

35
26
28
33
20

7,892
13,214
15,268
16,937
25,167

16
21
20
19
24

24,561
33,345
41,012
43,679
59,661

49
53
52
48
56

49,592
63,355
78,445
90,183
106,469

1990-91
1991-92
1992-93
1993-94
1994-95

25,820
32,645
26,133
21,321
28,113

19
19
15
10
11

33,799
36,731
36,507
48,748
62,624

24
21
21
24
25

78,663
102,352
114,388
135,430
160,436

57
60
64
66
64

138,282
171,728
177,028
205,499
251,173

1995-96
1996-97
1997-98
1998-99
1999-00

47,852
36,452
47,357
45,143
53,833

16
11
13
12
12

63,802
66,889
64,683
70,288
68,208

22
21
17
18
15

183,087
221,972
261,120
274,911
321,637

62
68
70
70
73

294,741
325,313
373,160
390,342
443,678

81,288
80,438
71,323
83,361
86,483
106,029
121,930
127,090
130,612

15
14
11
12
10
11
12
11
9

389,999
420,163
509,777
554,959
675,586
766,543
793,428
897,877
1,026,781

72
75
78
78
79
78
77
75
74

539,070
560,947
652,294
709,036
854,088
984,841
1,029,312
1,196,638
1,383,718

97,281
124,340

9
11

766,710
837,347

74
71

1,036,466
1,176,388
(Contd.)

2000-01
67,783
13
2001-02
60,346
11
2002-03
71,194
11
2003-04
70,716
10
2004-05
92,018
11
2005-06
112,268
11
2006-07
113,954
11
2007-08
171,670
14
2008-09
226,324
16
Jul-March
2008-09
172,476
17
2009-10 (P)
214,702
18
P : Provisional
** : Total may not tally due to rounding of figures

TABLE 7.6
ECONOMIC CLASSIFICATION OF EXPORTS AND IMPORTS (B. IMPORTS)
(Rs million)
Capital Goods
Value
Percentage
Share

Industrial Raw Material

Capital Goods
Consumer Goods
Value
Percentage
Value
Percentage
Share
Share

Consumer Goods
Value
Percentage
Share

**
Total
Value

1970-71
1971-72
1972-73
1973-74
1974-75

1,885
1,482
2,499
3,975
6,152

52
42
30
30
29

382
367
830
904
1,802

11
11
10
7
9

950
851
2,584
5,386
8,257

26
24
31
40
40

385
795
2,485
3,214
4,714

11
23
30
24
23

3,602
3,495
8,398
13,479
20,925

1975-76
1976-77
1977-78
1978-79
1979-80

7,158
8,750
9,316
10,970
16,679

35
38
34
30
36

1,261
1,463
1,921
2,160
2,916

6
6
7
6
6

7,709
9,148
11,023
15,416
19,834

28
40
40
42
42

4,337
3,651
5,555
7,842
7,500

21
16
20
22
16

20,465
23,012
27,815
36,388
46,929

1980-81
1981-82
1982-83
1983-84
1984-85

14,882
17,504
21,135
24,419
28,968

28
30
31
32
32

4,055
4,861
4,040
4,525
4,859

8
8
6
6
6

26,832
28,710
33,383
37,017
41,579

50
48
49
48
46

7,775
8,407
9,593
10,746
14,372

15
14
14
14
16

53,544
59,482
68,151
76,707
89,778

1985-86
1986-87
1987-88
1988-89
1989-90

33,195
33,841
40,350
49,498
48,420

37
37
36
37
33

4,966
6,150
8,021
9,929
10,439

5
7
7
7
7

36,353
36,227
48,153
53,055
61,562

40
39
43
39
41

16,432
16,213
16,027
23,359
28,432

18
17
14
17
19

90,946
92,431
112,551
135,841
148,853

1990-91
1991-92
1992-93
1993-94
1994-95

56,303
96,453
108,993
97,301
112,305

33
42
42
38
35

11,621
15,167
14,304
15,692
16,754

7
7
6
6
5

76,290
88,791
99,290
110,291
148,419

44
38
38
43
46

26,900
29,478
36,056
34,966
43,414

16
13
14
13
14

171,114
229,889
258,643
258,250
320,892

1995-96
1996-97
1997-98
1998-99
1999-00

140,405
169,774
139,618
146,450
140,045

35
37
32
31
26

22,541
22,259
23,344
25,646
30,712

6
5
5
6
6

180,539
202,379
195,528
220,563
287,801

45
43
45
47
54

54,090
70,589
77,848
73,305
75,234

14
15
18
16
14

397,575
465,001
436,338
465,964
533,792

2000-01
157,091
25
34,371
2001-02
176,702
28
39,038
2002-03
220,942
31
41,216
2003-04
316,082
35
57,310
2004-05
441,528
36
101,719
2005-06
631,644
37
124,480
2006-07
670,539
36
134,519
2007-08
731,017
29
202,538
2008-09
790,327
29
246,600
Jul-March
2008-09
572,324
28
180,212
2009-10 (P)
593,958
28
143,982
P : Provisional
** : Total may not be tally due to rounding of figures

6
6
6
7
8
7
7
8
9

345,770
346,865
380,035
441,586
557,226
769,336
864,736
1,322,329
1,337,986

55
55
53
49
46
45
47
53
49

89,768
72,025
72,179
82,847
122,607
185,698
182,011
256,187
348,657

14
11
10
9
10
11
10
10
13

627,000
634,630
714,372
897,825
1,223,079
1,711,158
1,851,806
2,512,072
2,723,570

9
7

1,001,624
1,076,543

50
52

267,832
13
2,021,991
267,280
13
2,081,762
Source: Federal Bureau of Statistics

Year

TABLE 7.7
MAJOR IMPORTS
Items

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

1. Chemicals
2. Drugs and
medicines
3. Dyes and
colours
4. Chemical
Fertilizers
5. Electrical goods
6. Machinery
(non-electrical)
7. Transport
equipments
8. Paper, board and
stationery
9. Tea
10. Sugar-refined
11. Art-silk yarn
12. Iron, steel & manufactures thereof
13. Non-ferrous metals
14. Petroleum &
products
15. Edible oils
16. Grains, pulses
& flours
17. Other imports
Grand Total
* : Provisional

82,263

90,953

119,683

160,711

176,200

200,333

256,618

300,450

(Rs. Million)
July-March
2008-09
2009-10 *
220,165
233,352

13,988

12,964

15,812

17,343

20,091

26,080

33,867

44,929

31,092

45,517

7,775

8,419

9,218

11,101

13,272

14,889

18,486

22,050

15,749

18,130

10,904
7,835

14,068
12,661

16,405
14,862

24,794
21,121

40,787
30,463

27,306
39,824

55,165
48,148

42,381
60,718

33,540
46,801

57,326
41,895

96,832

119,256

140,907

254,452

334,445

368,226

416,538

461,816

338,532

295,015

30,587

39,984

87,374

75,981

133,480

140,919

137,701

103,476

73,533

112,408

8,608
9,611
1,485
5,054

10,451
10,095
153
5,375

12,138
11,078
189
6,793

14,850
13,202
5,229
7,730

19,135
13,336
37,366
14,204

24,061
12,965
15,722
15,164

28,817
12,653
912
18,474

33,221
17,417
4,505
23,046

18,201
14,042
1,551
16,152

16,759
16,904
11,707
21,594

24,633
6,757

28,813
8,430

35,942
10,544

62,444
15,547

96,043
20,665

89,985
27,395

105,494
25,641

135,268
25,638

93,889
18,648

92,002
21,587

172,578
24,034

179,317
34,288

182,332
37,917

237,387
44,975

399,667
44,212

444,610
57,996

724,333
108,427

738,278
116,042

572,034
77,917

607,791
84,673

11,636
120,050
634,630

9,290
129,855
714,372

6,338
190,293
897,825

26,117
230,095
1,223,079

20,910
296,882
1,711,158

18,683
327,648
1,851,806

70,902
449,896
2,512,072

108,012
93,159
24,139
486,323
356,986
380,963
2,723,570 2,021,991 2,081,762
Source: Federal Bureau of Statistics

TABLE 7.8
DESTINATION OF EXPORTS AND ORIGIN OF IMPORTS
(% Share)
REGION

1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01

1. Developed Countries
Exports
60.8
Imports
58.3
a. OECD
Exports
57.2
Imports
55.7
b. Other European Countries
Exports
0.6
Imports
0.8
2. CMEA*
Exports
3.0
Imports
1.8
3. Developing Countries
Exports
39.2
Imports
41.7
a. OIC
Exports
12.7
Imports
17.9
b. SAARC
Exports
3.5
Imports
1.5
c. ASEAN
Exports
5.1
Imports
8.9
d. Central America
Exports
0.1
Imports
0.2
e. South America
Exports
0.2
Imports
1.6
f. Other Asian Countries
Exports
14.6
Imports
9.6
g. Other African Countries
Exports
3.0
Imports
2.0
h. Central Asian States
Exports
Imports
Total
100.0

56.7
62.2

57.1
58.6

60.3
52.6

58.9
49.3

55.6
49.9

60.0
48.7

59.4
46.5

59.9
42.2

61.0
36.7

56.7
31.0

54.9
58.7

56.7
57.0

60.0
52.1

58.6
48.5

55.3
49.0

59.7
48.1

59.5
46.1

59.6
41.6

60.6
36.1

56.3
30.5

0.3
0.5

0.4
0.3

0.3
0.5

0.3
0.8

0.3
0.9

0.3
0.6

0.3
0.4

0.3
0.6

0.4
0.6

0.4
0.5

1.5
3.0

1.0
1.3

0.5
1.6

0.4
2.1

0.5
1.9

0.7
1.3

0.6
0.9

0.4
1.0

0.4
1.2

0.4
0.9

44.3
37.8

41.9
41.4

39.2
45.8

40.7
48.6

43.9
48.2

39.3
50.0

39.6
52.6

39.7
56.8

38.6
62.1

42.9
68.1

14.6
16.5

16.0
16.9

13.7
20.9

12.9
21.3

12.9
22.4

11.8
26.0

12.5
23.3

12.7
24.3

14.1
35.2

16.5
39.3

4.7
1.5

3.8
1.5

3.1
1.6

3.4
1.4

2.7
1.5

2.5
2.4

3.5
2.3

5.0
2.2

3.2
1.9

2.9
2.9

5.6
7.3

5.2
8.5

3.7
9.5

4.0
12.6

5.3
11.2

2.5
9.0

3.2
12.6

3.2
14.1

2.8
10.2

3.6
10.6

0.2
0.1

0.3
0.1

0.5
0.1

0.4
0.1

0.3
0.2

0.5
0.2

0.7
0.1

0.8
0.3

0.9
0.2

0.8
0.2

0.5
1.3

0.5
1.6

0.9
1.0

1.0
1.4

1.4
1.2

1.2
1.7

1.6
1.1

1.2
2.1

1.1
1.0

1.2
1.6

14.3
9.5

13.0
11.1

14.0
10.8

14.9
9.5

17.1
9.4

15.6
8.7

12.9
10.7

12.8
10.3

12.4
10.3

13.0
10.6

4.4
1.6

3.0
1.7

2.9
1.9

3.6
2.2

3.8
2.3

4.4
1.9

4.3
2.5

3.5
2.8

3.8
3.0

4.3
2.8

100.0

0.1
100.0

0.4
100.0

0.5
0.1
100.0

0.9
..
100.0

0.8
0.1
100.0

0.9
-100.0

0.5
0.7
100.0

0.3
0.3
100.0

0.3
0.1
100.0
(Contd.)

TABLE 7.8
DESTINATION OF EXPORTS AND ORIGIN OF IMPORTS
REGION

2001-02

2002-03

1. Developed Countries
Exports
58.1
56.1
Imports
34.3
34.4
a. OECD
Exports
57.6
55.6
Imports
33.7
33.5
b. Other European Countries
Exports
0.5
0.5
Imports
0.6
0.9
2. CMEA*
Exports
0.5
0.6
Imports
1.1
0.8
3. Developing Countries
Exports
41.4
43.3
Imports
64.6
64.8
a. OIC
Exports
19.2
22.3
Imports
36.0
35.2
b. SAARC
Exports
2.5
2.4
Imports
2.4
1.9
c. ASEAN
Exports
2.7
2.9
Imports
11.7
12.2
d. Central America
Exports
1.0
0.9
Imports
0.1
0.1
e. South America
Exports
0.9
0.7
Imports
0.7
0.6
f. Other Asian Countries
Exports
11.4
9.9
Imports
10.9
12.5
g. Other African Countries
Exports
3.5
4.0
Imports
2.7
2.3
h. Central Asian States
Exports
0.2
0.2
Imports
0.1
..
Total
100.0
100.0
.. : Insignifcant
P : Provisional
* : Council for Mutual Economic Assistance.

(% Share)
Jul-March
2008-09 2009-10 P

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

58.2
35.5

55.9
38.0

54.7
34.2

54.7
33.3

51.0
30.2

46.4
29.1

46.3
27.5

43.9
27.1

57.6
34.7

55.2
34.7

53.8
32.4

53.8
31.5

50.0
27.1

45.5
27.8

45.4
26.3

43.0
26.0

0.7
0.8

0.7
3.3

0.9
1.8

0.9
1.8

1.0
3.1

0.9
1.3

0.9
1.2

0.9
1.1

0.7
1.2

0.9
2.1

0.9
2.2

1.1
1.8

1.2
1.4

1.2
3.1

1.3
3.7

1.2
1.3

41.1
63.3

43.2
59.9

44.4
63.6

44.2
64.9

47.8
68.4

52.4
67.8

52.4
68.8

54.9
71.6

20.7
33.7

21.9
29.2

23.3
33.7

21.6
32.0

26.4
33.4

30.4
33.9

30.4
35.1

28.5
37.8

3.2
3.1

4.6
3.2

4.4
3.3

4.8
4.5

4.4
5.0

5.0
3.8

5.4
3.8

5.4
3.8

2.7
11.1

2.1
10.0

1.7
9.1

1.9
9.5

1.7
9.9

2.1
10.4

2.0
10.3

3.1
11.2

0.9
0.1

0.9
0.1

0.9
0.1

1.1
0.2

1.0
0.1

1.0
0.2

1.1
0.2

0.9
0.3

0.8
0.6

0.9
1.1

1.0
1.4

1.4
0.8

1.6
1.8

1.4
1.2

1.5
1.2

1.1
0.5

9.4
12.3

8.7
13.7

8.9
13.7

9.2
15.9

8.4
15.7

8.5
15.2

8.2
15.0

11.3
15.6

3.2
2.3

4.0
2.4

4.1
2.2

4.1
1.9

4.2
2.2

4.0
3.0

3.8
3.1

4.6
2.3

0.2
0.1
100.0

0.1
0.2
100.0

0.1
0.1
100.0

0.1
0.1
100.0

0.1
0.3
100.0

..
..
0.1
0.1
0.1
0.1
100.0
100.0
100.0
Source: Federal Bureau of Statistics

TABLE 7.9
WORKER'S REMITTANCES
(US$ Million)
COUNTRY

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

1,252.45
27.75
9.86
33.12
12.96
44.24
16.25
12.87
516.16
60.35
105.07
38.74
49.07
17.26
137.02
150.34
126.46

1,238.51
25.42
7.54
40.64
11.62
60.22
15.18
10.91
525.94
51.67
97.76
32.47
47.79
17.50
114.02
157.80
119.79

1,093.36
25.92
5.65
28.88
7.13
47.85
11.85
7.57
493.65
46.07
99.36
29.32
51.12
16.73
2.19
101.19
122.49
95.75

1,317.73
35.90
4.91
27.71
6.90
57.86
13.40
11.52
554.08
61.49
178.26
51.99
90.09
28.96
7.22
109.96
141.09
114.65

1,227.28
33.23
5.67
26.06
3.65
45.43
11.72
14.08
503.22
64.44
161.93
48.98
81.19
28.95
2.81
109.74
141.92
106.19

1,078.05
29.16
3.59
18.98
3.05
38.38
7.97
9.68
418.44
46.11
164.39
44.91
93.07
22.90
3.51
97.94
146.25
94.11

1,237.68
34.31
4.14
16.62
2.65
52.40
7.16
12.17
474.86
61.97
207.70
75.13
101.01
28.54
3.02
98.83
166.29
98.58

875.55
33.31
3.46
11.93
3.09
106.36
5.26
12.94
318.49
44.67
125.09
38.07
70.57
14.69
1.76
73.59
81.95
55.41

913.49
29.36
3.86
10.47
1.58
135.25
5.60
13.29
309.85
46.42
147.79
47.30
87.04
12.80
0.65
73.27
79.96
56.79

1,021.59
23.87
4.90
9.20
3.93
123.39
5.74
13.38
304.43
38.11
190.04
48.11
129.69
12.21
0.03
81.39
134.81
88.40

548.37
II. Encashment*
215.03
323.73
352.20
Total (I+II)
1,467.48 1,562.24 1,445.56 1,866.10
* : Encashment and Profit in Pak Rs. of Foreign Exchange Bearer
Certificates (FEBCs) & Foreign Currency Bearer Certificates (FCBCs)

233.89
1,461.17

331.42
1,409.47

251.87
1,489.55

184.64
1,060.19

70.24
983.73

64.98
1,086.57
(Contd.)

I. Cash Flow
Bahrain
Canada
Germany
Japan
Kuwait
Norway
Qatar
Saudi Arabia
Sultanat-e-Oman
U.A.E.
Abu Dhabi
Dubai
Sharjah
Others
U.K.
U.S.A
Other Countries

TABLE 7.9
WORKER'S REMITTANCES
(% Share)
COUNTRY

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

Cash Flow
Bahrain
Canada
Germany
Japan
Kuwait
Norway
Qatar
Saudi Arabia
Sultanat-e-Oman
U.A.E.
Abu Dhabi
Dubai
Sharjah
Others
U.K.
U.S.A
Other Countries
Total

2.22
0.79
2.64
1.03
3.53
1.30
1.03
41.21
4.82
8.39
3.09
3.92
1.38
10.94
12.00
10.10
100.00

2.05
0.61
3.28
0.94
4.86
1.23
0.88
42.47
4.17
7.89
2.62
3.86
1.41
9.21
12.74
9.67
100.00

2.37
0.52
2.64
0.65
4.38
1.08
0.69
45.15
4.21
9.09
2.68
4.68
1.53
0.20
9.25
11.20
8.76
100.00

2.72
0.37
2.10
0.52
4.39
1.02
0.87
42.05
4.67
13.53
3.95
6.84
2.20
0.55
8.34
10.71
8.70
100.00

2.71
0.46
2.12
0.30
3.70
0.95
1.15
41.00
5.25
13.19
3.99
6.62
2.36
0.23
8.94
11.56
8.65
100.00

2.70
0.33
1.76
0.28
3.56
0.74
0.90
38.81
4.28
15.25
4.17
8.63
2.12
0.33
9.08
13.57
8.73
100.00

2.77
0.33
1.34
0.21
4.23
0.58
0.98
38.37
5.01
16.78
6.07
8.16
2.31
0.24
7.99
13.44
7.96
100.00

3.80
0.40
1.36
0.35
12.15
0.60
1.48
36.38
5.10
14.29
4.35
8.06
1.68
0.20
8.41
9.36
6.33
100.00

3.21
0.42
1.15
0.17
14.81
0.61
1.45
33.92
5.08
16.18
5.18
9.53
1.40
0.07
8.02
8.75
6.22
100.00

2.34
0.48
0.90
0.38
12.08
0.56
1.31
29.80
3.73
18.60
4.71
12.69
1.20
0.00
7.97
13.20
8.65
100.00
(Contd.)

TABLE 7.9
WORKERS REMITTANCES
(US $ Million)
July-March
2008-09
2009-10
5,657.61
6,549.87
114.58
116.10
58.54
82.79
73.05
62.56
3.21
4.69
324.27
332.75
17.77
27.33
245.79
272.99
1,113.58
1,342.77
208.55
210.98
1,210.15
1,497.24
439.31
829.38
735.50
624.28
34.81
42.11
0.53
1.47
406.43
660.97
1,291.47
1,317.71
590.22
620.99

COUNTRY

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

I. Cash Flow
Bahrain
Canada
Germany
Japan
Kuwait
Norway
Qatar
Saudi Arabia
Oman
U.A.E.
Abu Dhabi
Dubai
Sharjah
Others
U.K.
U.S.A
Other Countries

2,340.79
39.58
20.52
13.44
5.97
89.66
6.55
31.87
376.34
63.18
469.49
103.72
331.47
34.05
0.25
151.93
778.98
293.28

4,190.73
71.46
15.19
26.87
8.14
221.23
8.89
87.68
580.76
93.65
837.87
212.37
581.09
42.60
1.81
273.83
1,237.52
727.64

3,826.16
80.55
22.90
46.52
5.28
177.01
10.19
88.69
565.29
105.29
597.48
114.92
447.49
34.61
0.46
333.94
1,225.09
567.93

4,152.29
91.22
48.49
53.84
6.51
214.78
18.30
86.86
627.19
119.28
712.61
152.51
532.93
26.17
1.00
371.86
1,294.08
507.27

4,588.03
100.57
81.71
59.03
6.63
246.75
16.82
118.69
750.44
130.45
716.30
147.89
540.24
26.87
1.30
438.65
1,242.49
679.50

5,490.97
136.28
87.20
76.87
4.26
288.71
22.04
170.65
1,023.56
161.69
866.49
200.40
635.60
28.86
1.63
430.04
1,459.64
763.54

6,448.84
140.51
100.62
73.33
4.75
384.58
28.78
233.36
1,251.32
224.94
1,090.30
298.80
761.24
28.58
1.68
458.87
1,762.03
695.45

7,810.95
153.27
79.07
100.71
5.10
432.05
24.94
339.51
1,559.56
277.82
1,688.59
669.40
970.42
47.84
0.93
605.59
1,735.87
808.87

48.26
46.12
45.42
16.50
II. Encashment*
Total (I+II)
2,389.05
4,236.85
3,871.58
4,168.79
* : Encashment and Profit in Pak Rs. of Foreign Exchange Bearer
Certificates (FEBCs) & Foreign Currency Bearer Certificates (FCBCs)

12.09
4,600.12

2.68
5,493.65

2.40
6,451.24

0.48
0.45
1.02
7,811.43
5,658.06
6,550.89
Source: State Bank of Pakistan

TABLE 7.9
WORKERS REMITTANCES
COUNTRY

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

Cash Flow
Bahrain
Canada
Germany
Japan
Kuwait
Norway
Qatar
Saudi Arabia
Oman
U.A.E.
Abu Dhabi
Dubai
Sharjah
Others
U.K.
U.S.A
Other Countries
Total

1.69
0.88
0.57
0.26
3.83
0.28
1.36
16.08
2.70
20.06
4.43
14.16
1.45
0.01
6.49
33.28
12.53
100.00

1.71
0.36
0.64
0.19
5.28
0.21
2.09
13.86
2.23
19.99
5.07
13.87
1.02
0.04
6.53
29.53
17.36
100.00

2.11
0.60
1.22
0.14
4.63
0.27
2.32
14.77
2.75
15.62
3.00
11.70
0.90
0.01
8.73
32.02
14.84
100.00

2.20
1.17
1.30
0.16
5.17
0.44
2.09
15.10
2.87
17.16
3.67
12.83
0.63
0.02
8.96
31.17
12.22
100.00

2.19
1.78
1.29
0.14
5.38
0.37
2.59
16.36
2.84
15.61
3.22
11.77
0.59
0.03
9.56
27.08
14.81
100.00

2.48
1.59
1.40
0.08
5.26
0.40
3.11
18.64
2.94
15.78
3.65
11.58
0.53
0.03
7.83
26.58
13.91
100.00

2.18
1.56
1.14
0.07
5.96
0.45
3.62
19.40
3.49
16.91
4.63
11.80
0.44
0.03
7.12
27.32
10.78
100.00

2008-09

(% Share)
July-March
2008-09
2009-10

1.96
2.03
1.77
1.01
1.03
1.26
1.29
1.29
0.96
0.07
0.06
0.07
5.53
5.73
5.08
0.32
0.31
0.42
4.35
4.34
4.17
19.97
19.68
20.50
3.56
3.69
3.22
21.62
21.39
22.86
8.57
7.76
12.66
12.42
13.00
9.53
0.61
0.62
0.64
0.01
0.01
0.02
7.75
7.18
10.09
22.22
22.83
20.12
10.36
10.43
9.48
100.00
100.00
100.00
Source: State Bank of Pakistan

TABLE 7.10
GOLD AND CASH FOREIGN EXCHANGE RESERVES HELD AND CONTROLLED BY STATE BANK OF PAKISTAN
( US $ Million)
Cash(2)

Total
Period

June*

December*

June*

December*

Gold(1)
June*

December*

1960
246
272
194
220
52
52
1961
257
238
204
185
53
53
1962
237
249
184
196
53
53
1963
302
279
249
226
53
53
1964
259
219
206
166
53
53
1965
200
208
147
155
53
53
1966
265
197
212
144
53
53
1967
167
159
114
106
53
53
1968
182
239
128
185
54
54
1969
299
311
245
257
54
54
1970
287
184
233
130
54
54
1971
199
171
144
116
55
55
1972
285
286
225
226
60
60
1973
463
489
396
422
67
67
1974
403
472
336
405
67
67
1975
486
418
419
351
67
67
1976
614
539
546
471
68
68
1977
431
534
363
466
68
68
1978
1,010
832
696
444
314
388
1979
904
1,210
414
279
490
931
1980
2,019
1,815
831
627
1,188
1,188
1981
1,866
1,589
1,080
803
786
786
1982
1,460
1,527
862
971
598
598
1983
2,758
2,770
1,975
2,010
783
760
1984
2,489
1,715
1,788
1,074
701
641
1985
1,190
1,452
585
847
605
605
1986
1,638
1,446
968
793
670
653
1987
1,784
1,405
919
545
865
860
1988
1,326
1,258
479
440
847
818
1989
1,227
1,419
502
705
725
714
1990
1,451
958
766
277
685
681
1991
1,390
1,208
674
500
716
708
1992
1,761
1,629
1,069
950
692
679
1993
1,369
2,061
604
1,371
765
690
1994
3,337
3,922
2,545
3,132
792
790
1995
3,730
2,758
2,937
2,039
793
719
1996
3,251
1,780
2,465
1,092
786
688
1997
1,977
2,200
1,287
1,567
690
633
1998
1,737
1,737
1,125
1,122
612
615
1999
2,371
2,080
1,828
1,536
543
543
2000
2,149
1,998
1,547
1,396
602
603
2001
2,666
4,161
2,100
3,595
566
566
2002
5,439
8,569
4,772
7,902
667
667
2003
10,700
11,532
9,975
10,807
725
725
2004
11,883
10,756
11,052
9,925
831
831
2005 **
11,227
10,933
10,310
10,030
917
903
2006
12,810
12,697
11,542
11,429
1,268
1,268
2007
16,414
15,536
15,070
13,804
1,344
1,732
2008
11,465
9,625
9,539
7,834
1,926
1,791
2009
12,190
15,149
10,255
12,863
1,935
2,286
* : Last day of the month.
** : December 2005
Source: State Bank of Pakistan
(1) : Gold exclude unsettled claims of Gold on RBI since 2005
(2) : Cash includes Sinking fund, Foreign currencies cash holdings and excludes unsettled claims on RBI since 2005

TABLE 7.11
EXCHANGE RATE POSITION (Pakistan Rupees in Terms of One Unit of Foreign Currency)
(Average During the Year)
1995-96 1996-97 1997-98

Country

Currency 1991-92

1992-93

1993-94

1994-95

Australia
Austria
Bangladesh
Belgium
Canada
China
Denmark

Dollar
Schilling
Taka
Franc
Dollar
Yuan
Krone

19.1123
2.1433
0.6518
0.7327
21.3864
4.5781
3.8958

18.2623
3.3550
0.6628
0.8061
20.7982
4.5996
4.3059

20.8851
2.5433
0.7536
0.8559
22.5554
4.3316
4.5298

22.9083
2.9358
0.7673
1.0045
22.3750
3.6803
5.2534

25.4912
3.2639
0.8204
1.1185
24.6581
4.0354
5.9354

30.5300
3.4694
0.9128
1.1854
28.5449
4.6988
6.3775

France
Germany
Holland
Hong Kong
India
Iran
Italy

Franc
Mark
Guilder
Dollar
Rupee
Rial
Lira

4.4402
15.0838
13.3928
3.2047
0.9611
0.3699
0.0201

4.8939
16.5751
14.7394
3.3574
0.9405
0.3507
0.0190

5.2027
17.9039
15.9401
3.9011
0.9609
0.0179
0.0185

5.9623
20.6804
18.4547
3.9902
0.9814
0.0176
0.0198

6.6921
22.9718
20.5247
4.3345
0.9783
0.0192
0.0212

Japan
Kuwait
Malaysia
Nepal
Norway
Singapore
Sri Lanka

Yen
Dinar
Ringgit
Rupee
Krone
Dollar
Rupee

0.1896
86.4030
9.3259
0.5832
3.8505
14.8944
0.5831

0.2177
87.2127
10.1692
0.5741
4.0096
15.9865
0.5660

0.2843
101.5740
11.5288
0.6121
4.1305
19.0212
0.6120

0.3277
104.3749
12.1848
0.6178
4.6915
21.2485
0.6201

Sweden
Switzerland
S.Arabia
Thailand
UAE
UK
USA

Krona
Franc
Riyal
Baht
Dirham
Pound
Dollar

4.1506
16.9154
6.6442
0.9626
6.7874
43.7454
24.8441

3.9886
18.3825
6.9407
1.0028
7.0923
42.0315
25.9598

3.8009
20.8077
8.0642
1.1567
8.2415
45.1600
30.1638

34.1379

35.6217

42.2162

EMU
Euro
IMF
SDR
* : Composite Rate

1998-99

1999-00

2000-01

29.3472
3.4242
0.9513
1.1683
30.4828
5.2154
6.3310

29.3962
3.8557
0.9686
1.2952
31.0445
5.6548
7.0348

32.5665
3.7715
1.0285
1.2866
35.1611
6.2470
6.9724

31.3747
3.7942
1.0794
1.2934
38.4434
7.0601
6.9916

7.2196
24.4163
21.7451
5.0391
1.0894
0.0225
0.0250

7.1856
24.0995
21.3938
5.5762
1.1285
0.0246
0.0246

7.9685
26.7081
23.7008
6.0440
1.0935
0.0266
0.0271

7.9156
26.5372
23.5571
6.6573
1.1862
0.0295
0.0268

7.9536
26.6543
23.6655
7.4906
1.2529
0.0332
0.0269

0.3281
112.5264
13.2905
0.6102
5.3528
23.6411
0.6281

0.3376
129.6859
15.5861
0.6837
6.0509
27.4575
0.6823

0.3411
141.7916
12.5285
0.7034
5.8345
27.0557
0.7038

0.3797
153.8993
12.1327
0.6858
6.1371
27.6043
0.6869

0.4809
169.4791
13.6289
0.7503
6.3421
30.5305
0.7144

0.5109
190.4592
15.3871
0.7893
6.4483
33.1605
0.7026

4.1543
24.7362
8.2475
1.2174
8.4214
48.6951
30.8517

5.0484
28.0734
9.0606
1.2176
9.2329
51.9192
33.5684

5.5230
28.8164
10.4440
1.2176
10.6639
63.0683
38.9936

5.5260
29.3698
11.5178
1.1562
11.7623
71.1450
43.1958

5.9379
34.1098
15.5868
1.3438
15.9133
84.7395
58.4378

46.1616

49.6416

55.2477

58.4654

5.8006
6.0786
32.5174
32.5626
12.4882
13.8125
1.2313
1.3490
12.7583
14.0979
76.8085
82.4937
46.7904
51.7709
(50.0546) *
63.6850
70.1077

74.7760
(Contd.)

TABLE 7.11
EXCHANGE RATE POSITION (Pakistan Rupees in Terms of One Unit of Foreign Currency)
(Average during the Year)
2004-05 2005-06 2006-07

2007-08

2008-09

Average (Jul-Mar)
2008-09 2009-10

47.6760
na
0.8723
na
53.5778
7.7526
-

56.1958
na
0.9088
na
61.9742
8.6128
-

58.2931
na
1.1423
na
67.5867
11.4930
-

57.2858
na
1.1333
na
67.0459
11.3850
-

73.7292
na
1.2091
na
78.5428
12.2480
-

na
na
na
7.7127
1.3389
0.0066
na

na
na
na
7.7772
1.3746
0.0066
na

na
na
na
8.0273
1.5417
0.0067
na

na
na
na
10.1246
1.6468
0.0081
na

na
na
na
10.0276
1.6442
0.0080
na

na
na
na
10.7858
1.7817
0.0084
na

0.5558
202.3816
15.6244
0.8169
9.1841
35.6797
0.5813

0.5216
205.3258
16.0515
0.8296
9.2141
36.4149
0.5872

0.5122
209.8118
17.0649
0.8575
9.7161
39.1651
0.5649

0.5711
228.2954
18.9021
0.9593
11.6417
43.6846
0.5676

0.8012
281.2742
22.3290
1.0285
12.4113
53.5502
0.7024

0.7918
282.1313
22.1965
1.0269
12.4051
53.1377
0.7050

0.9159
291.6088
24.3771
1.1136
14.2240
59.2139
0.7303

7.5195
44.2489
15.3488
15.6727
100.1672
57.5745

8.2949
49.0657
15.8027
1.4763
16.1586
110.2891
59.3576

7.7867
46.8551
15.9608
1.5005
16.2972
106.4344
59.8566

8.6143
49.2385
16.1656
1.6789
16.5107
117.1852
60.6342

9.8890
56.6736
16.6973
1.8786
17.0391
125.2948
62.5465

10.4330
70.0527
20.9341
2.2651
21.3856
126.0915
78.4983

10.5073
69.1958
20.7452
2.2454
21.1973
126.4971
77.7888

11.6943
79.8424
22.2838
2.5058
22.7531
134.6501
83.5628

EMU
Euro
54.9991
61.3083
68.6226
IMF
SDR
78.0627
79.3198
83.2470
na : Common currency Euro is in use of these countries

75.5359
88.5631

72.8661
86.9594

79.1763
90.7726

92.1700
98.6265

Country

Currency

2001-02

2002-03

2003-04

Australia
Austria
Bangladesh
Belgium
Canada
China

Dollar
Schilling
Taka
Franc
Dollar
Yuan
Krone

32.1607
3.9960
1.0826
1.3633
39.1719
7.4149
7.3987

34.2101
na
1.0108
na
38.8234
7.0613
8.2524

41.0626
na
0.9842
na
42.8526
6.9497
9.2250

44.7141
54.8940
0.9774
na
47.5567
7.1676
10.1527

44.7564
na
0.9121
na
51.4986
7.4161
9.7699

France
Germany
Holland
Hong Kong
India
Iran
Italy

Franc
Mark
Guilder
Dollar
Rupee
Rial
Lira

8.3867
28.1084
24.9556
7.8720
1.2787
0.0307
0.0284

na
na
na
7.4990
1.2219
0.0073
na

na
na
na
7.3970
1.2682
0.0069
na

na
na
na
7.6176
1.3253
0.0067
na

Japan
Kuwait
Malaysia
Nepal
Norway
Singapore
Sri Lanka

Yen
Dinar
Ringgit
Rupee
Krone
Dollar
Rupee

0.4884
200.7861
16.1621
0.8033
7.0288
33.9503
0.6624

0.4888
194.5677
15.3944
0.7515
8.1021
33.3406
0.6057

0.5203
194.3681
15.1532
0.7802
8.2191
33.5098
0.5920

Sweden
Switzerland
S.Arabia
Thailand
UAE
UK
USA

Krona
Franc
Riyal
Baht
Dirham
Pound
Dollar

5.9117
37.1824
16.3792
1.4000
16.7231
88.5691
61.4258

6.6910
41.4643
15.5961
1.3742
15.9261
92.7433
58.4995

107.4327 106.6410 119.4486

119.9599 119.0398 131.0320
Source: State Bank of Pakistan