● GDP growth 5.97% FY22, SBP reserves $7.9 billion, policy rate 15%, workers’ remittances $31.

1.2 billion, current

account deficit 4.6% of GDP ($17.4 billion) compared to 0.8% of GDP ($2.82 billion) in FY21, Fiscal balance -7.1%
of GDP, investment 15.2% of GDP, 0.7% of GDP power sector subsidies, 58% export coverage of imports, 1 0.8%
tax-to-GDP ratio (11.4% in FY21) and Inflation 21.3% (June 2022, YoY). This performance was enabled by two
major factors:
o the country’s success in navigating through multiple waves of Covid-19 with targeted mobility
restrictions
o a prompt, well-coordinated and targeted monetary and fiscal response, aimed at countering the impact
of Covid on economic growth and livelihoods
● Rozgar Scheme provided payroll support to businesses so they could retain their workers, and was instrumental
in getting firms to restart their operations immediately after the reopening of the economy
o Rozgar scheme microfinance institutions had about 94.1 percent and 74.4 percent share in the total
applications approved by SBP, and constituted around one-fifth share in the actual benefits availed by
businesses from these schemes
● Temporary Economic Refinance Facility (TERF) would shore up the long-term productive capacity in the
economy
● Other SBP policy initiatives to bolster economic activity:
o measures to boost digitization in the economy amid Covid-related mobility restrictions
o relaxing credit requirements for exporters and importers
o incentivizing housing and construction finance
o adopting forward guidance as a tool to communicate future monetary policy stance, to address Covid-
related uncertainty and to facilitate economic decision-making
● Agriculture
o MSP for wheat raised substantially
o Subsidized availability of inputs and machinery
● Manufacturing
o Rationalization of duties on imported raw material
o Elimination of peak hour power tariffs
o Fast-tracked GST refunds
o LSM growth 14.9%
● Forward guidance from the SBP in January’21 ensured stability in the monetary landscape for the remainder of
the year, which helped ease medium- and long-term yields and increased market participation
● FX receipts from remittances, IMF, Roshan Digital Account, Eurobonds and exports helped partially offset higher
import bill, which mainly arose due to rising commodity prices and bad domestic harvests
● Fiscal deficit reduced to 7.1% of GDP from 8.1%. Social safety net spending was increased and non-interest
current spending was restrained. Developmental expenditure increased despite this, even though government
had to pay IPPs and Power Holding Private Limited (PHPL) under Circular Debt Management Plan (CDMP)
● Public debt reduced from 87.6% to 83.5% of GDP and debt maturity profile improved via issuance of new
diversified debt instruments such as domestic Naya Pakistan Certificates and Eurobonds internationally
● Food price inflation is a recurring menace and needs to be addressed by:
 o regular, timely and accurate monitoring of crops across the development stage
o investments in human capital to improve demand forecasts for major commodities
o addressing delays in procurement by public sector organizations
o removing procedural impediments in arranging timely imports
● To improve agricultural yield
o significant upscaling of existing R&D setups in the public and private research institutes
o addressing human and physical resource constraints
o development of new varieties of pest and climate change-resistant seeds
o strict enforcement of seed market regulations
● SBP Projections
o GDP growth 4-5%
o CPI 9-11%
o Remittances $30.5-32.5 Billion
o Exports $26.5-27.5 billion
o Imports $62.5-63.5 billion
o Fiscal deficit 6.3-7.3%
o Current account deficit 2-3%