The document provides information about Pakistan's balance of payments (BOP), including what the BOP is, potential causes of imbalances, its key components and conceptual framework. It notes the BOP provides a record of economic transactions between residents and non-residents of an economy. The State Bank of Pakistan compiles Pakistan's monthly, quarterly and annual BOP statistics using data from various sources. Summaries and graphs of Pakistan's BOP for fiscal years 2016 and 2017 are also presented.

2. Pakistan’s
Balance of Payments
Presentation
Prof.Dr.Salman Ahmed
Jan 19, 2018

3. Presentation By
Group Name :BOOKWORMS
• Rana Muhammad Ayaz Bin Mehmood (112056)
• Sumran Bashir (112065)
• Haris Mukhtar (112036)
• Imran Rasheed (112026)
• Junaid (112219)
• Majid Khan (152616)

4. What is BOP ?
Balance of payments is a statistical statement designed to
provide for a specific period of time a systematic
record of an economy’s transactions with the rest of
the world.
An “economy” is comprised of economic entities
(residents) that have closer association with that
specific economy than with any other. Economic
entities that have closer association with other
economies are nonresidents.

5. DISEQUILIBRIUM IN THE
BALANCE OF PAYMENT
A disequilibrium in the balance
of payment means its
condition of Surplus Or deficit

6. CAUSES OF DISEQUILIBRIUM IN
THE BOP
• Cyclical fluctuations
• Short fall in the exports
• Economic Development
• Rapid increase in population
• Structural Changes
• Natural Calamites
• International Capital Movements

7. Balance of Trade V/s Balance of
Payment
• The Balance of Payment takes into
account all the transaction with the rest
of the worlds
• The Balance of Trade takes into account
all the trade transaction with the rest of
the worlds

8. CONCEPTUAL FRAMEWORK OF BOP
• BOP registers transactions between residents
and non-residents.
• BOP deals with flows.
• BOP uses double entry accounting system.
• BOP adopts the principal of accrual accounting
(time of recording).
• BOP are normally expressed in domestic
currency or in stable unit of account.

9. Components of BOP

10. Why is it important ?
• The balance of payments statistics are used for a
number of reasons within a country and worldwide. The
most frequent users are:
• Domestic Economic Policy
Government authorities are constant users of balance of
payments and other statistics in carrying out their
responsibilities of monitoring economic activity,
formulating recommendations an appropriate balance of
payments and domestic economic policies and
evaluating various economic strategies.

11. International Uses
Regional balance of payments statistics are used both by
the Pakistan’s authorities and by the authorities of partner
countries to monitor developments in economic relations
between Pakistan and those countries or specific country
grouping.
Pakistan’s balance of payments is used by academic and
business observers as well as by policy maker around the
world in monitoring developments in the worldwide
payments position and in comparative studies of trends in
the balance of payments of various countries.
BOP data is also used by international bodies such as IMF,
World Bank and other external stakeholders etc.

12. Who does it compile
• Statistics Department of State Bank of
Pakistan is responsible to compile
Pakistan’s Balance of Payments Statistics
(BOP) as per IMF format (BPM5)

13. Periodicity and Timeliness
• Monthly (highly provisional), Quarterly and
Annually.
• Monthly: By the time lag of 36 days after the
reference Month.
• Quarterly: By the time lag of one quarter after
the reference period.

14. Data Sources ?
Sources
1. Authorized Dealers
2. Accounts Department of SBP
3. Foreign Shipping/Air Cos.
4. Pak Diplomatic Missions Abroad
5. Custom Houses/Duty Free Shops
6. Survey of Foreign Investment & Liab of Statistics Deptt of SBP
7. Economic Affaires Division
8. Economic Affaires Division EAD/Ads and Accounts Deptt of SBP
9. Development Project
10. FBS/ADS/EDMD of SBP
11. Pak Air / Shipping Cos.
12. Foreign embassies/int.
13. Inst. in Pakistan.
14. Exchange Cos,

15. System of Compilation
• Pakistan’s balance of payments statistics are compiled both
is Pak. Rupees and US Dollars on monthly, quarterly and
annual basis.
• Compilation process of Pakistan’s Balance of Payments
involves composing of data being received from various
sources in different formats. The data is distributed
according to sources in 14 sectors. Distribution is based on
main source of information. Collection, processing, and
compilation of whole data are distributed among three
Divisions viz. Balance of Payments, Exchange Accounts, and
Foreign Investment & Loans Division.
• A very comprehensive system is available in the BOP
Division to ensure incorporation of whole data.

16. Summary Balance of Payments
FY16
SourceSBPhttp://www.sbp.org.pk/ecodata/BOP-Services/bop.pdf

17. Graph of BOP for
FY16
Source SBP http://www.sbp.org.pk/ecodata/BOP-Services/bop.pdf

18. Summary Balance of Payments
FY17
SourceSBPhttp://www.sbp.org.pk/ecodata/BOP-Services/bop.pdf

19. Graph of BOP for
FY16
Source SBP http://www.sbp.org.pk/ecodata/BOP-Services/bop.pdf