PAKISTAN

SHORT INTRODUCTION OF THE FINANCIAL SYSTEM OF A COUNTRY:

 INDUSTRIAL OR SERVICE DOMINANT ECONOMY:

Currently Pakistan is ranked as a semi-industrial country progress is being made towards

industrialization.

 Central Bank of a Country:

State Bank of Pakistan (SBP)

 Currency of Country:

Pakistani Rupee (Urdu: ‫ روپیه‬Rūpiyah; sign: ₨; code: abbreviated as PKR, is the official currency of
Pakistan.

 Country Category:

Pakistan is an emerging country. Newly industrialized countries are emerging markets whose economies
have not yet reached developed status.

STOCK MARKET ELABORATION:

 Major Stock Market:

There are three stock exchanges in Pakistan; the Karachi Stock Exchange (KSE), the Lahore Stock
Exchange (LSE) and the Islamabad Stock Exchange (ISE).

 Major Stock Indices:

Karachi Stock Exchange KSE-100 index

Islamabad Stock Exchange ISE-10 index

Lahore Stock Exchange LSE-25 index

 Companies registered in Major Stock Market of the Country:

Total listed companies in KSE are 557

Total listed companies in ISE are 261

Total listed companies in LSE are 671

 Trading Volume/ Market Capitalization of Major Stock Market of The Country:

Market Capitalization of LSE is Rs 555.67 billion (US $3.9 Billion)

Market Capitalization of KSE is Rs 7.6 billion (US $24 Billion)

 Macro Economic Indicator of last Five years:

 GDP:

The Gross Domestic Product (GDP) in Pakistan was worth 312.57 billion US dollars in 2018.
The GDP value of Pakistan represents 0.50 percent of the world economy. GDP in Pakistan
averaged 75.28 USD Billion from 1960 until 2018, reaching an all time high of 312.57 USD
Billion in 2018 and a record low of 3.71 USD Billion in 1960.

312.57 US Billion dollars in 2018

304.95 US Billion dollars in 2017
278.65 US Billion dollars in 2016
270.56 US Billion dollars in 2015
244.36 US Billion dollars in 2014

 Inflation Rate:
Pakistan’s annual inflation rate rose to 10.34 percent in July of 2019 from 8.89 percent in the
previous month. It was the highest inflation rate since November of 2013. On a monthly basis,
consumer prices increased 2.29 percent, after rising 0.36 percent in June. Inflation Rate
in Pakistan averaged 7.76 percent from 1957 until 2019, reaching an all time high of
37.81 percent in December of 1973 and a record low of -10.32 percent in February of
1959.
 Inflation Rate in 2018 was 8.62%
Inflation Rate in 2017 was 4.53%
Inflation Rate in 2016 was 2.86%
Inflation Rate in 2015 was 4.15%

 Exchange Rate:

Official exchange rate (LCU per US$) in Pakistan was reported at 105 in 2018, according to the
World Bank collection of development indicators, compiled from officially recognized sources.

 Interest Rate:
The State Bank of Pakistan raised its benchmark interest rate by 100 bps to 13.25 percent
during its July meeting, amid increased inflationary pressures and elevated fiscal and current
account deficits. Consumer price inflation is expected to rise in the near-term due to higher
utility costs. Interest Rate in Pakistan averaged 11.17 percent from 1992 until 2019, reaching an
all time high of 19.50 percent in October of 1996 and a record low of 5.75 percent in May of
2016.

03/12/2018 10.00%
01/10/2018 8.50%
16/07/2018 7.50%
28/05/2018 6.50%
29/01/2018 6.00%
23/05/2016 5.75%
14/09/2015 6.00%
25/05/2015 6.50%
24/03/2015 8.00%
26/01/2015 8.50%
17/11/2014 9.50%

 Major Trading Partner:

Below is a list showcasing 15 of Pakistan’s top trading partners, countries that imported the most
Pakistani shipments by dollar value during 2018. Also shown is each import country’s percentage of total
Pakistani exports.

1. United States: US$3.8 billion (16% of total Pakistani exports)

2. China: $1.8 billion (7.7%)
3. United Kingdom: $1.7 billion (7.3%)
4. Afghanistan: $1.4 billion (5.7%)
 5. Germany: $1.3 billion (5.5%)
6. United Arab Emirates: $996 million (4.2%)
7. Netherlands: $941.6 million (4%)
8. Spain: $922.8 million (3.9%)
9. Bangladesh: $787.6 million (3.3%)
10. Italy: $776.5 million (3.3%)
11. Belgium: $668 million (2.8%)
12. France: $447.1 million (1.9%)
13. India: $382.2 million (1.6%)
14. Sri Lanka: $357.3 million (1.5%)
15. Saudi Arabia: $316.9 million (1.3%)

Over two-thirds (70.1%) of Pakistani exports in 2018 were delivered to the above 15 trade partners.

Among the top trading partners, Sri Lanka increased its import purchases from Pakistan at the fastest
rate with via 32.9% gain from 2017 to 2018. In second place was the Netherlands (up 24.2%) followed by
Bangladesh (up 21.8%), China (up 20.6%) then the United Arab Emirates (up 14.6%).

There were three decliners year over year namely Saudi Arabia (down -5.3%), Belgium (down -4.7%)
then Afghanistan (down -2.5%).

http://www.worldstopexports.com/pakistans-top-import-partners/
https://www.statista.com/statistics/383760/inflation-rate-in-pakistan/
https://tradingeconomics.com/pakistan/gdp
https://countryeconomy.com/key-rates/pakistan