ISLAMABAD – The SBP stressed a need for fast-track restructuring of Pakistan Railways, the generation and distribution companies (Gencos and Discos), so that these PSEs can contribute positively to country’s economic development.
The State Bank of Pakistan submitted its First Quarterly Report of FY15 titled ‘The State of Pakistan’s Economy’ to the Parliament. It says, ‘overall trade deficit increased by US$ 1.6 billion in Q1-FY15, compared to the same period last year’. This increase was partly compensated by US$ 765 million increase in home remittances during the quarter. The report adds that government borrowings remained lower during Q1-FY15 compared to last year because the government was able to borrow more from non-banks via PIBs and NSS. ‘Within the banking system, instead of borrowing from the central bank, the government borrowed from commercial banks, which also remained lower than the same period last year,’ observes the report.
The State Bank of Pakistan issued the first quarterly report for the year 2014-15 pointing to the formulation of a medium-term strategy to implement fiscal reforms, ranging from improving revenue generation to promoting private sector participation in loss-making PSEs.
