money & credit
TRANSCRIPT
Topics:
• Money and Credit• TRANSPORT AND COMMUNICATIONS
Money & Credit
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.
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
• 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).
Monetary Indicator (Growth rate)
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?
Graph of the Growth Rate
Private Sector GrowthBudgetary Support is Rs.185.5 billion
Actual expenses is Rs.130.1 billion
Net Govt. borrowing was 63.8 billion
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.
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%.
Manufacturing Sector
• The manufacturing sector their production decreases by the rate of 13.2% while last time this figure was 17.5%.
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%.
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).
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.
M. Afzal
TRANPORTATIONS
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
Road Density Road density (total length of roads) Total Pakistan road density is 259197 KMHigh type roads length is 172827 KMLow 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)
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
Improvement in Pak road density
According to 2006-2007 surveyIncrement 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
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%
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
SOME IMPROVEMENTS18-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
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 ???
Communication
Telecommunication
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
Pakistan Post Office
• Post offices 12,339• Earnings “331.260 million” during 2006-2007
Pakistan Television Corporation Ltd,(PTV)
• Ptv 1• Ptv 2 • Ptv 3
Pakistan electronic Media regulatory Authority
• 350 licensees have been awarded for established.• 2 licenses for internet protocol TV.
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
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
Internet users:
• 2.4 million registered connections• 12 million internet users
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
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•
Economic survey:
14%
10%1%
22%
50%
Celluar Market Share (Jun 06)
warid telenorinsta ufonemobilink
16%
16%
1%2
%
21%
44%
Cellular Market Share (Mar 07)
waridtelenorinstaphonepaktelufonemobilnk
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
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
Sector Accomplishment:
• FDI in Telecom Sectoro Record inflowso 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
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
Telecom Contribution to Exchequer:
Telecom Contribution 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
Reduction on telecom tariff
International Recognition of TelecomPolicies:
• Pakistan contested ITU elections for a Council Seat and Radio Regulation Board (RRB) membership
• Won council seat
Telecom Regulatory Environment in Pakistan– rated the best by LIRNEasia
• Won two awards• Government Leadership Award• Global Regulatory Exchange
The End