Contents Contents iii PART-1: PERFORMANCE OF THE ECONOMY AND 1 Chapter 1: Economic Performance of Three 3 1.1 Trends in the World 4 1.2 Negative Factors in the Domestic 4 1.3 Rate of Economic 6 1.4 8 1.5 10 1.6 12 1.7 Public 14 1.8 Balance of 15 1.9 International Rankings of 17 1.10 The Economic Performance 18 1.11 Conclusion 23 Chapter 2: SBP’s Performance Since 25 2.1 State of the Economy in 25 2.2 SBP Policies for Stabilizing the Balance of 27 2.3 The Continuing Search for Financial 29 2.4 SBPs Role after 31 2.5 Macroeconomic Impact of Monetary 32 2.6 Inflation 35 Chapter 3: Annual Economic Review of 39 3.1 The Global 39 3.2 Pakistan Economy: GDP 40 3.3 41 3.4 42 3.5 Balance of 44 3.6 Public 45 Chapter 4: The Economic Outlook for 47 4.1 The Global 48 4.2 Projections of Pakistan 49 4.3 Balance of Payment 51 4.4 Budgetary 55