INTEREST RATE

S.KAMAL HAYDER KAZMI,
(feedback@pgeconomist.com)
Research Analyst
, PAGE
Feb 28 - Mar 6, 2011

STRUCTURE OF INTEREST RATES IN PAKISTAN (%)

DATE

SBP REVERSE
REPO RATE

SBP
REPO RATE

EXPORT REFINANCE

REMUNERATION ON FE-25 CRR

DATE

RATES

DATE

RATES

30-Jul-08 13 - 5-Feb 4 10-Jan 0
13-Nov-08 15 - 5-Mar 4.5 10-Feb 0
31-Jan-09 15 - 5-Apr 5 10-Mar 0
21-Apr-09 14 - 5-May 6.5 10-Apr 0
17-Aug-09 13 10 5-Jun 6.5 10-May 0
29-Sep-09 13 10 5-Jul 7.5 10-Jun 0
25-Nov-09 12.5 9.5 6-Jul 6.5 10-Jul 0
30-Jan-10 12.5 9.5 9-Nov 7 10-Aug 0
27-Mar-10 12.5 9.5 10-Jan 7.5 10-Sep 0
24-May-10 12.5 9.5 10-Apr 8 10-Oct 0
2-Aug-10 13 10 10-Jul 8.5 10-Nov 0
30-Sep-10 13.5 10.5 10-Oct 9 10-Dec 0
30-Nov-10 till date 14 11 01-Jan-2011 till date 10 11-Jan 0

WORLD INTEREST RATES

COUNTRY

CURRENT RATE

PREVIOUS RATE

LAST CHANGE

COUNTRY

CURRENT RATE

PREVIOUS RATE

LAST CHANGE

Australia 0.0475 0.045 Nov 02-2010 Japan 0.001 0.003 Dec 19-08
Brazil 0.1125 0.1075 Jan 24-2011 Korea 0.0225 0.02 Jul 09-10
Canada 0.01 0.0075 Sep 08-2010 Malaysia 0.0275 0.025 Jul 08-10
Chile 0.0325 0.03 Nov 18-2010 Mexico 0.045 0.0475 Jul 17-10
China 0.0606 0.0581 Feb 8-2011 New Zealand 0.03 0.0275 Jul 28-10
Colombia 0.03 0.035 Apr 30-2010 Norway 0.0175 0.015 Dec 16-09
Czech Republic 0.0075 0.01 May 06-2010 Philippines 0.04 0.0425 Jul 09-09
Denmark 0.0075 0.01 Jan 15-2010 Poland 0.035 0.0375 Jun 24-09
Egypt 0.0825 0.085 Sep 22-2009 South Africa 0.06 0.065 Sep 10-10
European Monetary Union 0.01 0.0125 May 07-2009 Sweden 0.01 0.0075 Oct 26-10
Hong Kong SAR 0.005 0.015 Dec 17-2008 Switzerland 0.0025 0.005 Mar 12-09
Hungary 0.06 0.0575 Jan 24-2011 Taiwan 0.0125 0.015 Feb 19-09
Iceland 0.0425 0.045 Feb 2 2011 Thailand 0.0225 0.02 Jan 12-11
India 0.065 0.0625 Jan 25-2011 Turkey 0.065 0.0675 Nov 20-09
Indonesia 0.0675 0.065 Feb 04-2011 UK 0.005 0.01 Mar 05-09
Israel 0.0225 0.02 Feb 01-2011 US 0.0025 0.01 Dec 16-08

PAK: BALANCE OF TRADE (US mn $)

PERIOD EXPORTS VALUE IMPORTS VALUE BOT
2005-06 16,553 24,994 -8,441
2006-07 17,278 26,989 -9,711
2007-08 20,427 35,397 -14,970
2008-09 19,121 31,747 -12,627
2009-10 19,632 31,054 -11,422
Jul-10 1,660 2,917 -1,256
Aug-10 1,810 2,921 -1,111
Sep-10 1,775 2,366 -598
Oct-10 1,835 2,609 -774
Nov-10 1,955 2,804 -849
Dec-10 2,100 3,130 -1030
Jan-11 2,041 2,779 -738

PAKISTAN: INTEREST RATE SPREAD (%)

YEARS

AVERAGE YIELD ON EARNING ASSETS

AVERAGE COST OF INTEREST LIABILITIES

SPREAD

(a)

(b)

(a-b)

CY98

14.0

8.5

5.4

CY99

12.7

7.7

5.0

CY00

11.3

6.6

4.7

CY01

11.2

6.1

5.1

CY02

8.7

4.3

4.5

CY03

5.7

2.0

3.8

CY04

5.0

1.5

3.5

CY05

7.5

2.6

5.0

CY06

9.1

3.9

5.2


CORE INFLATION OF CPI IN PAKISTAN (%)

MONTHS TRIMMED NON-FOOD & NON ENERGY
Mar-2010

12.7

9.9

Apr-2010

12.7

10.6

May-2010

12.5

10.3

Jun-2010

11.7

10.4

Jul-2010

12.0

10.3

Aug-2010

12.5

9.8

Sep-2010

12.8

9.4

Oct-2010

12.8

9.3

Nov-2010

13.4

9.5

Dec-2010

13.6

9.5

Jan-2011

13.00

9.4


US $ RATES  PER PAK RUPEE

YEARS LEADARS US $
1972 Z.A. Bhutto Rs 4.7
1977 Z.A. Bhutto Rs 9.9
1983 Gen Ziaulhaq Rs 13.1
1987 Gen Ziaulhaq Rs 17.7
1990 Benazir Bhutto Rs 24
1991 Nawaz Sharif Rs 25
1994 Benazir Bhutto Rs 30.6
1996 Benazir Bhutto Rs 40.3
1997-99 Nawaz Sharif Rs 53
1999-08 Pervaiz Musharraf Rs 62
Feb-2011 Yousaf Raza Gilani Rs 85.65

CREDIT/LOANS CLASSIFIED BY BORROWERS (Rs. Million)

DESCRIPTION JUN-09 DEC-09 JUN-10 DEC-10
1. Credit to Government Sector (A+B) 2,002,177 2,139,820 2,426,425 2,694,873
A. SBP Credit to Government Sector (Net) 1,144,337 1,081,002 1,187,822 1,279,141
B. Scheduled Banks Credit to Government Sector (Net) 857,840 1,058,818 1,238,603 1,415,732
2. Credit to Non Government Sector (A+B) 3,163,233 3,377,516 3,311,418 3,509,547
A. SBP Credit to Non Govt. Sector 26,365 26,004 29,387 29,384
B. Scheduled Banks Credit to Non Govt.Sector (I+II+III) 3,136,868 3,351,512 3,282,031 3,480,163
I. Credit to PSEs 350,742 453,474 419,655 418,827
Investment in Non-financial PSEs 131,748 224,608 250,862 251,369
Loans to Non-financial PSEs 218,994 228,866 168,793 167,458
II. Credit to NBFIs 134,484 142,355 113,085 118,705
Investment in NBFIs 94,735 93,039 69,686 76,657
Loans to NBFIs 39,749 49,316 43,399 42,048
III. Credit to Private Sector (A+B) 2,651,643 2,755,683 2,749,291 2,942,631
A. Investment in Securities & Shares of Private Sector 113,123 115,521 145,051 153,924
B. Loans to Private Sector 2,538,520 2,640,162 2,604,240 2,788,707