World Bank2015-01-212015-01-212014-10https://hdl.handle.net/10986/21315For 2013 progress in Pakistan was significant and supported by a solid economic reform program of the Government of Pakistan. An IMF Extended Fund Facility (EFF) and two World Bank Development Policy Credits with a focus to restructure the energy sector, foster private and financial sector developments and improve social protection and revenue mobilization reinforced the reform program. The risk of a balance of payment crisis was minimized with a significant strengthening of the international reserves position. This mainly resulted from strong remittances and significant foreign capital inflows, which also brought stability in the foreign exchange market. A strong fiscal consolidation was achieved; the fiscal deficit was contained at around 5.5 percent of GDP - due to improved tax collection, high non-tax revenues, and restricted (current and development) expenditures. Price stabilization followed with average inflation remaining in single digits. This environment favored growth recovery, with the GDP growth rate above 4 percent for the first time in seven years - driven by dynamic manufacturing and service sectors supported by better energy availability and improved investors' expectations. As a result, performance under the IMF program remained satisfactory, with the Third Review concluded on June 27. However, since mid-August, the ongoing political uncertainty has negatively affected the macroeconomic stance and may modify the pace and depth of reforms. Some salient features of FY2013/14 economic performance were: growth re-emerged; increased remittances, capital and financial inflows supported a buildup of reserves; a significant correction of a previously loose fiscal stance took place; fiscal consolidation and improvement in business confidence produced a strong recovery in credit to the private sector, after five years of muted growth; price stability - with CPI inflation in single digit - was preserved; and progress on the structural reform agenda was promising. The political events following the mid-August Long-March and Sit-in may have affected the economy, and it also remains to be determined how much the pro-reform momentum, so carefully gathered during the past fiscal year and entering a decisive second year, will be affected by the civil unrest, but new investors' confidence-building measures will have to be nurtured to reinvigorate the reform agenda.en-USCC BY 3.0 IGOACCOUNTINGAGGREGATE DEMANDAMORTIZATIONARREARSAUCTIONAUCTIONSAUDITSAVAILABILITY OF CREDITBALANCE OF PAYMENTBALANCE OF PAYMENTSBANK DEBTBANK FINANCINGBANKING SECTORBANKING SYSTEMBASIS POINTSBENEFICIARIESBIDBONDBOND INDEXBONDSBROAD MONEYBUDGETARY SUPPORTBULLET REPAYMENTBUSINESS CLIMATEBUSINESS CONFIDENCEBUSINESS ENVIRONMENTCAPITAL ADEQUACYCAPITAL FORMATIONCAPITAL GAINSCAPITAL INFLOWSCAPITAL MARKETCAPITAL MARKET TRANSACTIONSCAPITALIZATIONCASH HOLDINGSCASH RESERVECASH TRANSFERCASH TRANSFERSCENTRAL BANKCOMMERCIAL BANKCOMMERCIAL BANK CREDITCOMMERCIAL BANKSCOMMODITYCOMMODITY PRICESCONCESSIONARY TAXCONSUMER PRICE INDEXCONSUMPTION EXPENDITURESCORPORATE GOVERNANCECOUNTRY RISKCREDIT BUREAUCREDIT QUALITYCURRENT ACCOUNTCURRENT ACCOUNT BALANCECURRENT ACCOUNT DEFICITDEBT ISSUEDEBT MANAGEMENTDEBT MATURITYDEBT RATIODEBT SERVICEDEBT STOCKDEVELOPMENT BANKDISBURSEMENTDOMESTIC BANKDOMESTIC BORROWINGDOMESTIC DEBTECONOMIC DEVELOPMENTSECONOMIC PERFORMANCEECONOMIC REFORMEQUIPMENTEQUITY MARKETEUROBONDEXCHANGE RATEEXPENDITUREEXPENDITURESEXPORT COMPETITIVENESSEXPORT GROWTHEXPORT MARKETEXPORT PERFORMANCEEXTERNAL DEBTEXTERNAL FINANCINGFINANCIAL INFLOWSFINANCIAL SECTORFINANCIAL SECTOR DEVELOPMENTFINANCIAL SECTOR DEVELOPMENTSFISCAL CONSOLIDATIONFISCAL DEFICITFISCAL DEFICITSFIXED RATEFOREIGN ASSETFOREIGN ASSETSFOREIGN CAPITALFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE MARKETFOREIGN EXCHANGE RESERVEFOREIGN EXCHANGE RESERVESFOREIGN INFLOWSFOREIGN INVESTORSFOREIGN PORTFOLIOFOREIGN PORTFOLIO INVESTMENTGOVERNMENT BORROWINGGOVERNMENT BORROWINGSGOVERNMENT EXPENDITURESGOVERNMENT GRANTSGOVERNMENT SECURITIESGROSS DOMESTIC PRODUCTGROWTH RATEHUMAN RESOURCEIMMUNIZATIONINCOMEINFLATIONINFLATION EXPECTATIONSINFLATION RATEINFLATIONARY PRESSUREINFLATIONARY PRESSURESINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE PROJECTSINSURANCEINTEREST PAYMENTSINTEREST RATEINTEREST RATE SPREADSINTERNATIONAL BANKINTERNATIONAL BONDINTERNATIONAL BOND MARKETINTERNATIONAL CREDITINTERNATIONAL CREDIT RATINGSINTERNATIONAL DEBTINTERNATIONAL DEBT MARKETSINTERNATIONAL DEVELOPMENTINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL RESERVEINTERNATIONAL RESERVESINVESTINGINVESTMENT ASSETSINVESTMENT CLIMATEINVESTMENT CLIMATE REFORMSINVESTMENT DECISIONSINVESTMENT RATEINVESTMENTS IN GOVERNMENT SECURITIESISSUANCELOANLOAN PORTFOLIOLOAN SIZELOCAL CURRENCYMARKET PRICEMARKET PRICESMATURITYMFIMICRO-INSURANCEMICROFINANCEMICROFINANCE INSTITUTIONSMICROFINANCE SECTORMONETARY FUNDMONETARY POLICYNATIONAL INVESTMENTNATIONAL SAVINGSNON-PERFORMING LOANSOIL PRICESPERMANENT SHOCKPOLITICAL UNCERTAINTYPOLITICAL UNRESTPORTFOLIOPORTFOLIO INVESTMENTPRICE STABILITYPRIVATE INVESTMENTPRIVATE INVESTORSPRIVATE SECTOR CREDITPRIVATE SECTOR GROWTHPRIVATIZATIONPRIVATIZATIONSPRIZE BONDSPUBLIC DEBTPUBLIC FINANCEPUBLIC INVESTMENTRECURRENT EXPENDITUREREFORM PROGRAMREGULATORREMITTANCEREMITTANCESRESERVE REQUIREMENTRESERVESRETURNRETURN ON ASSETRETURNSSAVINGS RATESETTLEMENTSINKING FUNDSOCIAL DEVELOPMENTSOCIAL PROTECTIONSOVEREIGN BONDSOVEREIGN BONDSSTATE BANKSTOCK EXCHANGESTOCK EXCHANGESSTOCKSSUKUKSUSTAINABILITY ANALYSIST- BILLST-BILLTAXTAX COLLECTIONTAX EXEMPTIONSTAX RATESTECHNICAL ASSISTANCETIME DEPOSITSTRADE BALANCETRADE DEFICITTRADINGTREASURYTREASURY BILLTREASURY BILL AUCTIONTREASURY BILLSTURNOVERUNIONUNIVERSAL ACCESSVERTICAL INTEGRATIONVOLATILE EXCHANGE RATEVOLATILITYWORKING CAPITALYIELD CURVE10.1596/21315