World Bank Group2016-06-022016-06-022016-04https://hdl.handle.net/10986/24398South Asia emerged as the fastest growing region in the world in 2015, posting GDP growth of 7 percent. Weak oil and commodity prices, slowing capital flows and shrinking global trade contributed towards a deceleration of growth in most of the world's economies. South Asia - as a net importer of oil - was an anomaly, growing significantly on the back of higher private consumption and public investment. Higher remittances and reserve buffers throughout the region offset the fall in exports caused by the drop in global demand. The region is set to maintain real GDP growth above 7 percent over the next few years. However, the tailwinds are now fading - capital flows have declined and remittances are starting to feel the reality of low oil prices. Pakistan, while not growing as quickly as its neighbors, has continued its steady growth recovery in H1FY16. Strong growth in consumption, rising foreign exchange reserves, fast-growing workers' remittances and a lower import bill compensated for a significant fall in exports. Low oil prices generated a significant boost, driving a 9.1 percent fall in the import bill and reducing inflation significantly, in turn creating scope to reduce the policy rate. Private sector consumption, propelled by higher remittances and a loosened monetary policy, is expected to account for over half of FY16 GDP growth.en-USCC BY 3.0 IGOAUCTIONMONETARY POLICYSOVEREIGN YIELDACCOUNTINGDEPOSITSWITHHOLDING TAXINTERESTPUBLIC INVESTMENTSREMITTANCEPRIVATE CREDITDEVELOPING COUNTRIESREPAYMENTSEXPORTERSREVENUESPORTFOLIOFISCAL POLICYCAPITAL ADEQUACYLOANLIQUIDITY CONSTRAINTISLAMIC FINANCETREASURY BILLREGULATORY AUTHORITYINSTRUMENTSPOLITICAL RISKSTRADE FINANCINGMARKET LIQUIDITYOIL PRICESMARKET REFORMSCURRENCYEXPORT GROWTHCOMMERCIAL BANKEXCHANGE RATESINTERNATIONAL BONDCORPORATE BOND MARKETMONETARY FUNDEMERGING MARKETFINANCIAL INSTITUTIONSCAPITAL MARKETDEBTMARKETSLOCAL GOVERNMENTFINANCIAL FLOWSINFLATION RATESETTLEMENTDOMESTIC DEBTCASH RESERVERESERVE REQUIREMENTRECURRENT EXPENDITUREDOMESTIC BONDSCOMMODITY PRICEINTERNATIONAL FINANCIAL INSTITUTIONSMARKET ECONOMIESBANKING SECTORFISCAL DEFICITGOVERNMENT BUDGETSTRANSACTIONSINVESTMENT FLOWSEMERGING MARKETSAUCTIONSINTEREST PAYMENTSGOODINTERNATIONAL TRADECASH TRANSACTIONSMARKET CAPITALIZATIONFUTUREMARKET PRICESMOBILE PHONEMARKET DIVERSIFICATIONFOREIGN DIRECT INVESTMENTCAPACITY CONSTRAINTSFIXED CAPITALFEDERAL BUDGETFOREIGN INVESTMENTEXCHANGESGOVERNMENT EXPENDITURESTRATEGIC INVESTOREXPORT SHARESINVESTMENTS IN GOVERNMENT SECURITIESCAPITALIZATIONBORROWING REQUIREMENTDISBURSEMENTSISSUANCESHAREST-BILLSTRADE LIBERALIZATIONCROP LOSSESSECURITIESPUBLIC DEBTBALANCE OF PAYMENTTREASURYSOLVENCYCORPORATE DEBT MARKETINSURANCEGOVERNMENT DEBTECONOMIC DEVELOPMENTOPEN MARKETTIME DEPOSITSGLOBAL TRADEEUROBONDCOMMERCIAL BANKSCORPORATE BONDISLAMIC BONDFINANCIAL SUPPORTPORTFOLIO INVESTMENTCONSUMER PRICE INDEXLENDINGMATURITIESFISCAL DISCIPLINEREMITTANCESPUBLIC SPENDINGLIMITED LIABILITYCOMMODITY PRICESLIABILITIESARREARSSTOCK EXCHANGESEXPORT SHARECAPITAL ACCOUNTINVESTINGTARIFFSDEFICITBASIS POINTSLIABILITYOIL PRICEBROAD MONEYSTOCKFOREIGN INVESTORSFISCAL DEFICITSREPOFOREIGN EXCHANGE MARKETMONEY SUPPLYEXPORT PERFORMANCEEMERGING ECONOMIESINTEREST RATEEXCHANGEDISCOUNT RATEBALANCE OF PAYMENTSBANKING SYSTEMINTERNATIONAL BOND MARKETISSUANCESLIQUIDITYEQUITY MARKETTAX COLLECTIONGOVERNMENT BORROWINGNATIONAL SAVINGSDOMESTIC CORPORATE DEBTBONDSDISCOUNTTAXNON-PERFORMING LOANSBUDGETINGLONG-TERM INVESTMENTRESERVEINFLATIONSTATE BANKENABLING ENVIRONMENTEMERGING MARKET ECONOMIESGOVERNANCE STANDARDSBUDGETCENTRAL BANKFOREIGN MARKETSMACROECONOMIC STABILITYPOLICY RESPONSEFISCAL POLICIESTRADE BALANCESUKUKGLOBAL ECONOMYCOMMERCIAL BORROWINGMARKET REGULATORTRADINGTAX EXEMPTIONSINTEREST RATESINVESTMENT REQUIREMENTINVESTMENT PURPOSESPRIVATE INVESTMENTRETURNDEFICITSBASIS POINTDIRECT INVESTMENTLOANSRESERVESASSET CLASSESPRIVATE CAPITALGROSS DOMESTIC PRODUCTRETURN ON ASSETSFINANCEFOREIGN CURRENCYPUBLIC INVESTMENTTAXESEXPENDITUREGOVERNMENT SECURITIESINFRASTRUCTURE INVESTMENTEQUITYINVESTORSFOREIGN EXCHANGE RESERVESTAX RATEPRIVATE SECTOR CREDITEXPORT COMPETITIVENESSSAVINGS RATEPENSIONSRETURNSFIXED INVESTMENTBUDGETSTAX CONCESSIONSFINANCIAL INSTRUMENTSINVESTMENT ASSETSBOND MARKETWORKING CAPITALYIELD CURVEEXPENDITURESCAPITAL FLOWSBIDSCURRENT ACCOUNT DEFICITT-BILLMARKETFOREIGN EXCHANGECREDIT BUREAULEVYDEBT MARKETINVESTMENT RATESCORPORATE DEBTGOODSINVESTORMARKET SHAREGOVERNMENT SUBSIDIESFINANCIAL MARKETINTERNATIONAL MARKETSTOCKSREPO RATESTOCK EXCHANGEINVESTMENTBONDSHAREINVESTMENT CLIMATEPOVERTYFINANCIAL MARKETSTARIFFBIDREVENUEPROFITINVESTMENTSCHECKCREDIT GROWTHEXCHANGE RATEINSTRUMENTASSETS RATIOPROFITSINTERNATIONAL INVESTORSGUARANTEEISLAMIC BONDSMARKET LEVELReportWorld Bank10.1596/24398