This document discusses Pakistan's financial sector and monetary policy in 2006-2007. It includes: - An overview of Pakistan's credit plan for 2006-2007 which projected 13.6% broad money expansion and was based on 7% GDP growth and 6.5% inflation targets. - Analysis of growth in different sectors, finding lower private sector growth due to declines in commerce, textiles and rising business loans. Agriculture achieved less than its target. - Discussion of transportation infrastructure developments and performance of rail, broadcasting, postal and telecommunication sectors, which saw significant expansion and investment. - The telecom sector achieved strong growth and attracted $1.4 billion FDI, with cellular subscriptions reaching 40.

1. Group Members
• Zulfiqar Nazir 39
• Muhammad Afzal 10
• Saqib Khurshed 33
• Zohaib Hassan 38
• Noman Aslam 27

2. The Topicwe will discuss:
Money & Credit

3. Money & Credit
•Introduction:
•The development of financial market and institution
is a critical part of the economic growth.
•The banking sector of Pakistan was nationalized and
public sector financial institutions were expended in
1970.
•The financial sector of Pakistan remarkable
improvement in 1990.

4. Credit Plan
• The state bank of Pakistan prepare the credit
plan for the year 2006-2007, to maintain price
stability and economic growth.
• This project broad money expansion at 13.6
percent (Rs.459.9 billion). This projection was
based on targeted GDP growth of 7 percent
and inflation target of 6.5 percent.
Credit Plan

5. • The projected monetary expansion during
FY(fiscal year) 07 was expected to result
primarily from the build up in the net
domestic assets (NDA), (Rs.450.1 billion) and a
moderate rise in the net foreign assets (NFA)
(Rs.9.8 billion).

6. Monetary Indicator (Growth rate)

7. Private Growth Rate of 2007
• Why the growth of the private sector is less
than the pervious year?
• Why the growth of private sector is more fiscal
than the other year?

8. Graph of the Growth Rate

9. Private Sector Growth
Budgetary Support is Rs.185.5 billion
Actual expenses is Rs.130.1 billion
Net Govt. borrowing was 63.8 billion

10. Business Sector
• A analysis shows that in business sector major
slow downs because:
• The low commerce and trade.
• The low textiles industry rate.
• Increasing loans from personal business.
These are some factors which become the
cause of low business growth in private sector.

11. Agriculture Sector
• Govt. set the target that they should earn
maximum Rs.160 billion. But they achieve the
amount of Rs.98 billion.
• This is because of the following reasons:
• The production loans was increased to Rs. 15
billion while year this figure was Rs. 13.5
billion.
• Total loans jumped up to 88% while last year
this figure was 81%.

12. Manufacturing Sector
• The manufacturing sector their production
decreases by the rate of 13.2% while last time
this figure was 17.5%.

13. Construction sector
• This sector is going well in Pakistan at the year
of 2007 due to some reasons: some of the
international construction companies were
started their business in Pakistan whose names
are:
• Meindheart
• Emaar
• Al-Ghurair
• Rate increased to 24.5%.

14. Some Other Reasons
• Net Domestic Assets is also increased by the
rate of 14.28% while the last year this figure
was the 13.50%.
• The higher the growth in the NDA the country
will grow more sharply.
• At the same time the external cash flows in
Pakistan are also not available(2007).

15. Some Other Reasons
• Currency circulation is also increased by the
rate of 18.1% while the last year this figure
was the 16.7%. As the currency circulation
increases the more the rate of inflation
increases and the over all economy growth is
decreased. These are the some reasons
why the growth rate is so much down in
Pakistan.

16. M. Afzal
TRANPORTATIONS

17. Road Transportation
 90% passengers movement
 96% fright movement
 10,849 km National Highway and Motorway
networks
 Contributes 4.2 percent of the total road
networks
 90% of the total traffic use National Highway
and Motorway networks for movement

18. Road Density
 Road density (total length of roads)
 Total Pakistan road density is 259197 KM
High type roads length is 172827 KM
Low type roads length is 86370 KM
 Pakistan road density is too low as
compare to others countries
 JAPAN 3.07, UK 1.62, PAK 0.32 (Road
Length / Sq. Km of Area)

19. National Highway Authority
 All the Pakistan inter provincial roads links
called highway.
 Total length 10849 KM
 Only 4% of total Pakistan roads
 Carrey 80% country commercial traffic

20. Improvement in Pak road density
 According to 2006-2007 survey
Increment in high type roads 3.2% /year
 Low type roads declining rate 5.6% /year
 17 Road projects are completed
 15 Road projects on going

21. Pakistan Railway
A well functioning railway system direct
effect the economic growth
Performance of railway decline day by day
• Passengers traffic decline 41% to 10%
• Freight traffic decline 73% to 4%

22. SOME IMPROVEMENTS
 Last 7 years (2000-2007) P.R improve their
performance
• Passengers traffic increase 5.6% /year
• Freight traffic increase 8% /year
 2005 to 2006 positive growth
• Passengers traffic increase 5.7% /year
• Freight traffic increase 9% /year

23. SOME IMPROVEMENTS
18-feb-2005 to 08-march-2007 P.R introduced nine
(9) new trains.
 These are ;
i) Thar Express
ii) Margala Express
iii) Marvi Express
iv) Sindh Express
v) Buraq Express
vi) Peshawar Express
vii) Pakistan Express
viii) Jinnah Express
ix) Sir Syed Express

24. Performance
Performance of P.R not improve, it still
remain same due to ;
• Inefficient policies of the Minister of P.R
Ghulam Ahmad Bloor
• Attacks by terrorists
• Not proper plans how to improve ???

25. Pakistan Broadcasting corporation
(PBC)
• PBC has 31 Broadcasting
• 33 transmitters
• 8 short wave transmitter
• 21 FM transmitters
• 21 National & Regional Languages
• 98% cover
• FM services oct, 1998
• Boost agriculture productions
• Air 136 news bulletins

26. Pakistan Post Office
• Post offices 12,339
• Earnings “331.260 million” during 2006-2007

27. Pakistan Television Corporation Ltd,
(PTV)
• Ptv 1
• Ptv 2
• Ptv 3

28. Pakistan electronic Media regulatory
Authority
• 350 licensees have been awarded for
established.
• 2 licenses for internet protocol TV.

29. Communication
Telecommunication

30. Telecom sector
• Create business friendly enviourment
• Dramatic growth
• Teledensity increases in many folds
• 55.6 billion mobile subscriber at the end of
march 2007
• WLL increases 1.6 million user such as pay
pone and internet users

31. Teledensities table in %:
country 2002-03 2003-04 2004-05 2005-06 2006-07
Pakistan 4.3 6.3 11.9 26.2 40.2
Sri Lanka 12.2 16.6 23.4 29.0 37.0

32. Internet users:
• 2.4 million registered connections
• 12 million internet users

33. Sector revenue:
• During July-April 2006-07, telecom sector
attracted US$ 1.4 billion
• Strong growth in the sector
• Revenue of companies 193 billion last year
• 240 billion in 2006-07
• government’s
• exchequer is also expected to cross Rs. 81
billion

34. Cellular mobile:
• Total five companies
• In GSM sector four out of five perfumed well
• Warid and Telenor give lower tariff
• 2.3 million new subscriber each month
•

35. Economic survey:
14%
10%
1%
22%
50%
Celluar Market Share (Jun
06)
warid
telenor
insta
ufone
mobilink
16%
16%
1%
2%21%
44%
Cellular Market Share (Mar
07)
warid
telenor
instaphone
paktel
ufone
mobilnk

36. Fixed Line Services:
• the Long-distance and International
(LDI)segment
• 13 companies are operational
• PTA also awarded licenses to 38 Fixed Local
Loop (FLL) companies
• Four companies have launched their services
in few cites of Punjab and Sindh
• 5.2 million fixed line subscribers

37. Wireless Local Loop:
• introduced in Pakistan in 2004
• objective to bridge the digital divide between
the rural and urban areas
• total WLL subscribers have
• reached 1.6 million which are now 30 percent
of FLL

38. Sector Accomplishment:
• FDI in Telecom Sector
o Record inflows
o In 2005-06, telecom sector received over US$
1.9 billion
• In July-April 2006-07, telecom sector attracted
US$ 1.4 billion
• Expected one and half dollar mark at the end
of the year

39. Contribution to National Exchequer:
• In form of taxes PTA deposit Rs.77 billion
• In 2006-07, GST collection is expected to be
over Rs. 33.8 billion
• Collects activation tax on new mobile
connections at the rate of Rs. 500/each
• Under this had collect Rs.12.24 billion

40. Telecom Contribution to Exchequer:
Telecom
Contributio
n to
Exchequer
(Rs. in
Billions )
GST Activation
Tax
PTA
Deposits
Others Total
2003-04 12.1 4.02 0.69 21.59 38.40
2004-05 20.5 7.53 17.72 21.38 67.13
2005-06 26.8 11.40 17.38 21.55 77.10
2006-07 33.8 12.24 11.50 23.51 81.05

41. Reduction on telecom tariff

42. International Recognition of Telecom
Policies:
• Pakistan contested ITU elections for a Council
Seat and Radio Regulation Board (RRB)
membership
• Won council seat

43. Telecom Regulatory Environment in
Pakistan– rated the best by LIRNEasia
• Won two awards
• Government Leadership Award
• Global Regulatory Exchange

44. The End