| The resent financial crisis has impacted almost | | | | represents the confidence of the overseas |
| every country in the world. But in Pakistan case it | | | | residents in the Pakistan's economy. |
| was the past governments performance rather | | | | Despite the failure of banking system all over the |
| than the financial crisis which played a major role | | | | world, Pakistan's banks have remained stable. It is |
| in the slow down of the economy. But the last | | | | encouraging that Pakistan banks did not rely any |
| couple of months have given the country | | | | kind on bail out package for their stability as |
| economist a bit of breathing space. | | | | against many of the European banks. |
| Foreign exchange reserves have reached dose to | | | | But the other side of the picture is quite grim. |
| ten billion dollars. It is the payment of first | | | | Inflation still remains a major threat to the living |
| installment of loan by International Monetary Fund | | | | standard of people of the country. The |
| (IMF). Bold steps taken by government against | | | | government has still not passed the benefits of |
| some of the foreign exchange companies have | | | | reduction in oil prices to consumer which is quite |
| resulted in the decline of rupees value against | | | | surprising. The prices of the general necessities |
| dollar. | | | | are till vary high. |
| | | | | |
| | | | | |
| Pakistan import bill both on account of | | | | But one of the major worries for the |
| merchandise and services has fallen. So one can | | | | government is the decline in industrial production. |
| hope that the current account deficit by June | | | | Manufacturing is in a severe grip of an energy |
| 2009 will be much lower than witnessed in | | | | crisis. The negative trend in industrial production is |
| 2007_08. Increase in remittances from overseas | | | | gaining momentum. This would have a major |
| residents is another positive sign for the | | | | impact on country s export. So one cannot rule |
| economy. One major factor behind this is the | | | | out the possibility of a further increase in current |
| falling of rupees value against dollar. It also | | | | account deficit. |