EMBASSY OF PAKISTAN 6

EDL were 236.8 percent of foreign exchange earnings (FEE) but declined to

127.1 percent in the same period.

􀂃 EDL were nearly 5.8 times foreign exchange reserves (FER) at the end of

FY02 but have declined to 3.4 percent by end-March 2008.

􀂃 Interest payments on external debt were 7.8 percent of current account

receipts but declined to 2.5 percent during the same period.

MONEY AND CREDIT

􀂃 Money Supply (M2) during July-May 10, 2007-08grew by 9 percent against

the annual target of 13.7 percent and last year’s expansion of 14 percent for

the same period.

􀂃 Net domestic assets increased to Rs.656.7 billion as compared to increase of

Rs.395.5 billion in the same period of last year.

􀂃 Net foreign assets have recorded a contraction of Rs.289 billion against the

increase of Rs.84.6 billion in the same period of last year.

􀂃 Government borrowing for budgetary support has recorded an increase of

Rs.362 billion as compared to Rs.212 billion in the same period of last year.

􀂃 Credit to private sector amounted to Rs.369.8 billion during July-May

10,2007-08 as compared to Rs.263.4 billion in the same period last year.

􀂃 Credit to manufacturing sector recorded to be Rs.193 billion compared with

Rs.119 billion in the same period of last year.

􀂃 Weighted average lending and deposit rates increased to 10.9 percent and

4.2 percent in March 2008 while weighted average yields on 6 months T-bill

increased to 9.4 percent in March 2008.

CAPITAL MARKETS

􀂃 KSE-100 Index closed at 12,130.5 points on May 30, 2008, down by 1,642

points (or 11.9 percent) from the end June position of the last year.

􀂃 Nevertheless, the index broke the psychological barrier of 15,500 points as

it was all-time high of 15,676 points on April 18, 2008

􀂃 Aggregate Market Capitalization declined abruptly by Rs 273 billion,

from Rs 4,019 billion in June 2007 to Rs 3,746 billion in May 2008.

􀂃 Foreign portfolio investment showed a net outflow of US$45 million

during first nine months of fiscal year 2007-08.

INFLATION

􀂃 Inflation as measured by the changes in Consumer Price Index (CPI)

stood at 10.3 percent during July-April 2007-08, as against 7.9 percent in the

comparable period of last year.