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SBP’s Third Quarterly Report 2015 on the State of the Economy


KARACHI: After facing some hurdles in the initial months of the fiscal year 2015, the third quarter ended with a visible improvement in the macroeconomic sector of the Pakistan, according to third quarterly report of the Central Board of Directors of the State bank of Pakistan (SBP) presented in parliament yesterday.


According to Third Quarterly Report issued by External Relations Department of SBP, major development witnessed in the current account improvement, growth in worker’s remittances during the year that was 18.5% higher than FY14, increase in Coalition Support Fund, slash in oil prices these are the major inflows during the year. Moreover, SBP liquid forex reserves were also improved and are enough to finance three months of the import bill of the country.

FBR tax collection was also satisfactory but was low as compare to July-Mar FY14. During Jul-Mar FY15, it grew by 12.7% as compare to 17.9% of the Jul-Mar FY14.

“In order to address these issues and to put the economy on a higher growth trajectory, bold policy measures along with better overall governance are inevitable”, the report concludes.


Bird’s eye view of the Report:


GDP grew by 4.24% in FY15. However, target was 5.1%.

Agriculture grew by 2.9% in FY15 as compared to 2.7% of FY14.

Large Scale Manufacturing (LSM) grew by 2.5% during Jul-Mar FY15 as compared to 4.6% of the same period last year.

Commodity producing sectors grew by 5% in FY15 as compare to 4.4% of the FY14.

View of SBP:

The first and foremost, exports, the prime source of foreign exchange earnings for the country, have been stagnant in the recent past, and declined during Jul-Mar FY15.

Secondly, as the non-debt inflows remained subdued, the country has to rely on debt inflows for the financing of current account deficit, and building up of liquid FX reserves. Net FDI inflows, though maintained the last year’s level, could not match the outflow under repatriation of profits/dividends.

Thirdly, the modest growth in tax collections continued to be a challenge.

Finally, inter-agency receivables remain a major constraint on the efficient functioning of the energy sector.

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