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BDUL WLI KHN UNIVERSITY MRDN

KPK
PKISTN

DEPRTMENT
MNGEMENT SCIENCES
INTERNTIONL BNKING ND FINNCE
QZI YSIR RFT

SSIGNMENT
POSITION OF BLNE OF PYMENTS OF PKISTN ND
CUSES OF DEFICIT ND SURPLUS IN THE BLNCE OF
PYMENTS

Submitted by:
Clss:
Clss No:
Dte:

Slmn Khn
BS (Bnking & Finnce) 5th
06
October 22, 2014

Contents
INTRODUCTION....................................................................................................................................1
BLNCE OF PYMENTS:.................................................................................................................1
POSITION OF BLNCE OF PYMENTS OF PKISTN 1990-2013:...................................2
Cuses of Deficit In BOP:.................................................................................................................3
Cuses of Surplus in BOP:...............................................................................................................3

INTRODUCTION
BLNCE OF PYMENTS:
No single country is self sufficient in producing nd providing ll kinds of goods
nd services they need, but they re specilized in producing only one kind of
goods or services, in order to fulfill their needs of the kind of goods nd services
they need they need to rely on other countries which re specilized in prticulr
type of good or service for this purpose the whole world is connected through
interntionl trde they imports those goods nd services from other countries
which is specilize in tht prticulr good or service which they cnt produce
domesticlly.
nd the countries which is specilized in producing prticulr type of good or
service they export it to the other countries who re in need of tht prticulr
goods nd services e.g Pkistn exports cotton, rice etc to other countries nd in
return Pkistn imports those goods nd services which they lkes e.g Cpitl
goods, edible oils to fulfill their needs.
The blnce between the pyment for imports nd receipt in result of exports is
clled blnce of pyments.
It is record of economic trnsctions between residents of one country nd the
rest of the world during the course of one yer. The blnce of pyments like ll
blnce sheets must blnce. The items which led to n inflow of foreign
ernings re plced on the credit side of the blnce sheet, wheres the items
which give rise to n outflow of foreign currency re plced on the debit side

POSITION OF BLNCE OF PYMENTS OF PKISTN 1990-2013:


Blnce of Pyments of Pkistn (1990-2013)
(Million US $)
s
percentge of
GNP*/GDP
Yers export Import Trde Workers Current
s
s
Blnc Remittn /c
(F.O.P) (F.O.P) e
ce
Blnce
of
pyment

Trde
Blnce

Curren
t
/C
Bl

198990

4634

7411

2483

1942

- 1891

- 4.9

- 4.7

199192

6131

7619

- 3128 1848

- 2171

- 3.3

- 4.8

199293

6762

8998

- 2236 1468

- 1346

- 4.8

- 2.8

199394

6685

8685

- 2000 1446

- 1965

- 3.4

- 3.8

199495

7759

10296

- 2537 1866

- 2484

- 3.7

- 4.1

199596

8311

12015

- 3704 1461

- 4575

- 4.9

- 7.2

199697

8096

11241

- 3145 1409

- 3846

- 5.7

- 6.2

199798

8434

10301

- 1867 1490

- 1921

- 2.4

- 3.1

199899

7528

9613

- 2085 1060

- 2429

- 2.8

- 4.1

199900

8190

9602

- 1412 983

- 1143

- 2.4

- 1.6

200001

8933

10202

- 1269 1087

- 513

- 2.1

- 0.7

200102

9140

9434

- 294

2389

- 1338

- 1.7

+ 1.9

200203

10889 11333

- 444

4237

3165

- 1.3

+ 3.8

20039175
993283 - 757
2875
1369
3.3
04
2004-05
14,401
18,753 -4352
4,168
-1,753
5.5
1.6
2005-06
16,388
24,647 -8259
4,600
-5,649
9.5
4.5
2006-07
17,119 26,614
-9,495
5,494 -7,361
5.1
2007-08
20,207 35,027
-14,820
6,451
-14,302
8.5
2008-09
18,918 31,410
-12,492
7,811
-9,395
5.7
2009-10
14,159 24,303
-10,144
5,658
-8,489
1.7
2010-11
14,218 22,242
-8,024
6,551
-2,894
2011-12
20014
34974
-14960
11,201
2012-13
25812
44238
-18426
2.1

+1.3

9.4
12.8
10.6
7.0
-

Cuses of Deficit In BOP:


The blnce of pyments position of Pkistn hs not been stisfctory since
1947. The country with the exceptions of 5 yers i.e. (1950-51, 1954-55, 195556, 1958-59, nd 1959-60) hs been running constnt deficit in his blnce of
pyment in current ccount. The deficit in current ccount is being met by short
nd long term lons from the other countries or from institutes s Interntionl
Monitory Fund (IMF) nd the min reson of politicl instbility from 1990 nd
onwrds.

Cuses of Surplus in BOP:

The surplus on current ccount ws due to devlution of rupee nd greter trde restrictions
on imports.
While in 1958 to 1960 BOP ws in surplus due to introduction of Bonus vouchers.
Excluding the five yers stted bove, Pkistn hs been fcing deficit in its BOP.
The deficit in current ccount in BOP for the yer 1996-97 ws $3.28 billion. It hs been down to $
1.92 Billion during 1997-98 nd $1.14 billion in 1999-2000. Pkistns current ccount blnce ws
fvorble in 2002 to 2004. However it slipped gin into dnger zone in 2004-05 nd 2006-07 due to
higher imports of oil nd mchinery. BOP deficit incresed to $ 13.735 billion during 2007-08 ginst
$ 6.878 billion in 2006-07. During 2008-09 (July- pril) the deficit reduced to $ 8.549 billion ginst
$11.173 billion in the corresponding yer period lst yer but in 2009-10 this deficit reduced to $3.6
billion1 nd now currently we hve trde surplus of 26 million in our current ccount which is
good sign

References:

Pkistn nd gulf economist, Power emergency, Feb 2-8,2009 ,topic Energy crisis : relity or
myth by Mohmmd shfq, pge number 23

Pkistn nd gulf economist, how to boost exports? Feb 14-20,2011 ,Kyrgyz holds immense
trde opportunities for Pkistn , pge number 8,

Economic survey of Pkistn 2009-10, chpter nme blnce of pyment, topic nme direction
of exports pge 94

Economic survey of Pkistn 2009-10, chpter nme blnce of pyment topic: Exchnge rte,
pge 105

Pkistn nd gulf economist, Power emergency, Feb 2-8,2009 , Fct sheet pge number 61,
tble

Economics of Pkistn by M. Seed Nsir edition 2009-10, chpter interntionl trde pge
number 184.

http://www.revolutionrydemocrcy.org/rdv8n1/

http://www.dwn.com/news/372427/the-problem-of-deficit-inblnce-of-pyments

http://www.sbp.org.pk/reports/nnul/rFY01/qtr-index-eng.html

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