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What major trade issue has Pakistan experienced consistently since the early 1950s?
Among the listed fiscal years, which one had the lowest trade deficit?
Which fiscal year reported the highest imports in Pakistan?
Which fiscal year saw exports exceed $24,000 million for the first time?
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What type of transactions are excluded from the bank's reporting of trade data?
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What was the balance of trade for Pakistan in FY 05?
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In which fiscal year did the trade balance reach its most negative value?
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What was the value of re-exports in FY 04?
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Which year had the highest recorded exchange rate of the Pakistani Rupee against the US Dollar before 2010?
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What significant financial assistance was provided to Pakistan by the IMF in November 2008?
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What was the exchange rate of the Pakistani Rupee against the US Dollar in the year 2005?
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How much did the IMF increase the loan amount to Pakistan in July 2010?
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In which year did the exchange rate of the Pakistani Rupee first exceed 50 PKR against the US Dollar?
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What was the exchange rate of the Pakistani Rupee against the US Dollar in 2012?
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What economic event led to the IMF providing assistance to Pakistan?
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What is a primary benefit of an efficient stock market in relation to investments?
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Which year showed a significant jump in the exchange rate from 2006 to 2008?
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How do efficient stock markets influence the industrial sector?
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What role does the financial sector play in relation to dispersed household savings?
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What is one consequence of inefficient stock markets on investors?
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What reduces the incentive for entrepreneurs to enter new ventures when stock markets are inefficient?
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What is a key effect of an efficient stock market on the economy?
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What potential effect does increased volume in the capital market have on production and price levels?
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Which of the following describes a potential risk for investors in poorly-functioning stock markets?
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What is the main objective of the second phase of reforms initiated by the SBP?
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What is one responsibility of the State Bank of Pakistan?
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What method does the SBP use for off-site surveillance of banks?
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What is the purpose of the inspection conducted by the SBP?
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Which department has the SBP established to protect customer interests?
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What type of regulations has the SBP issued to ensure the viability of financial institutions?
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What is a key feature of on-site inspection by the SBP?
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What is the importance of continuously reviewing the reforms initiated by the SBP?
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What is the minimum paid-up capital requirement for Microfinance Banks/Institutions to commence business?
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What percentage of risk-weighted assets must a Microfinance Bank maintain as equity?
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What is the maximum loan amount that a Microfinance Bank can extend to a single borrower?
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Which of the following constitutes Non-Performing Loans (NPLs) for Microfinance Banks?
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What percentage of demand and time liabilities are scheduled banks required to keep with the State Bank?
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What service does the State Bank provide to scheduled banks regarding deposits?
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What is the liquidity requirement for Microfinance Banks in terms of their time and demand liabilities?
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What defines a scheduled bank under the SBP Act?
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Study Notes
Trade Deficit in Pakistan
- Pakistan has faced a trade deficit in most years, except for 1947-48, 1950-51, and 1972-73.
Balance of Trade in Pakistan (Million Dollars)
- FY 2000: Exports - 8,568.60, Re-exports - 67.1, Imports - 10,309.40, Re-imports - 18.1, Balance of Trade - -1,691.80
- FY 2001: Exports - 9,201.60, Re-exports - 63.5, Imports - 10,728.90, Re-imports - 12.2, Balance of Trade - -1,476.00
- FY 2002: Exports - 9,134.60, Re-exports - 70.1, Imports - 10,339.50, Re-imports - 11.1, Balance of Trade - -1,145.90
- FY 2003: Exports - 11,160.20, Re-exports - 50.4, Imports - 12,220.30, Re-imports - 5.8, Balance of Trade - -1,015.50
- FY 2004: Exports - 12,313.30, Re-exports - 415.9, Imports - 15,591.80, Re-imports - 14.3, Balance of Trade - -2,876.90
- FY 2005: Exports - 14,391.10, Re-exports - 103.4, Imports - 20,598.10, Re-imports - 80.2, Balance of Trade - -6,183.80
- FY 2006: Exports - 16,451.20, Re-exports - 129.1, Imports - 28,580.90, Re-imports - 10.3, Balance of Trade - -12,010.90
- FY 2007: Exports - 16,976.20, Re-exports - 162.1, Imports - 30,539.70, Re-imports - 4.4, Balance of Trade - -13,405.80
- FY 2008: Exports - 19,052.30, Re-exports - 727.4, Imports - 39,965.50, Re-imports - 10.9, Balance of Trade - -20,196.70
- FY 2009: Exports - 17,688.00, Re-exports - 263.3, Imports - 34,822.10, Re-imports - 20.4, Balance of Trade - -16,891.20
- FY 2010: Exports - 19,290.00, Re-exports - 257, Imports - 34,710.00, Re-imports - -, Balance of Trade - -15,163.00
- FY 2011: Exports - 24,810.90, Re-exports - 357.3, Imports - 40,413.70, Re-imports - 24.1, Balance of Trade - -15,269.60
- FY 2012: Exports - 24,573.00, Re-exports - -, Imports - 44,950.00, Re-imports - -, Balance of Trade - -20,377.00
PKR vs US Dollar Exchange Rates
- 1961: 4.76
- 1970: 4.76
- 1972: 9.91
- 1980: 7.887
- 1990: 21.32
- 1991: 24.74
- 1992: 25.46
- 1993: 30.12
- 1994: 30.76
- 1995: 33.59
- 1996: 39.53
- 1997: 43.64
- 1998: 46.11
- 1999: 51.76
- 2000: 57.71
- 2001: 61.31
- 2002: 58.68
- 2003: 57.43
- 2004: 59.83
- 2005: 59.76
- 2006: 60.73
- 2007: 60.95
- 2008: 79.76
- 2009: 82.87
- 2010: 83.41
- 2011: 85.95
- 2012: 97.11
- August 2013: 104.39
IMF Bailouts for Pakistan
- IMF provided a loan of US$7.6 billion in November 2008 to prevent a balance of payments crisis.
- The loan amount was increased to US$11.3 billion in July 2010 to help Pakistan overcome the economic crisis.
Financial Sector Reforms in Pakistan
- State Bank of Pakistan (SBP) initiated a five-year reform program for the financial sector in early 2005.
- The reforms were completed successfully and a second phase was launched for implementation over the next five years.
- The objective of the second phase is to further strengthen the financial sector and integrate it with the global economy.
State Bank of Pakistan's Roles
- Ensuring Financial System Soundness: The SBP regulates and supervises the financial system to ensure soundness, stability, and protect depositor interests.
- Customer Protection: The SBP established a Customer Protection Department.
- Inspection: The SBP monitors banking activities through 'off-site' surveillance and 'on-site' inspections, ensuring prudent lending and investment policies.
- Prudential Regulations: The SBP has issued comprehensive Prudential Regulations for commercial banks, Rules of Business for non-banking financial institutions (NBFIs), and Prudential Regulations for Microfinance Banks/Institutions (MFBs/MFIs).
- The Bankers' Bank: The SBP serves as the bankers' bank, providing services to scheduled banks that meet its requirements, such as maintaining statutory reserves, and offering other facilities in exchange for certain obligations.
Microfinance Bank/Institution (MFB/MFI) Regulations
- Minimum paid-up capital is required for MFBs/MFIs to operate.
- MFBs/MFIs must maintain equity equal to at least 15% of risk-weighted assets, a 5% cash reserve, and 10% liquidity in liquid assets.
- Loans exceeding Rs. 100,000/- to a single borrower are not allowed.
- Loans overdue for 30 days or more are classified as Non-Performing Loans (NPLs).
Stock Markets and Economic Growth
- An efficient stock market attracts savings and allows for efficient allocation of funds to entrepreneurs with good credentials and reputation.
- It helps households diversify risk and maintain liquid investments.
- It facilitates information gathering and monitoring of industrial activities, reducing the risk aversion towards equity stakes.
- It mitigates moral hazard and enhances productivity.
- It encourages entrepreneurship by providing an exit route through public offerings.
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Description
This quiz explores the historical trade deficit data of Pakistan, highlighting significant years and their respective balances of trade. Participants will learn about the trends in exports and imports from FY 2000 to FY 2006, enhancing their understanding of Pakistan's economic challenges.
