Increased economic activity in FY2016-17 may impact inflation. Focusing on inflationary expectations, a nine-member Monetary Policy Committee (MPC) of State Bank of Pakistan (S BP) on Saturday, therefore, decided to maintain policy rate at 5.75 percent for the next two months.

-- One percent rise in LSM growth (3.5%)

-- Cotton and rice output down

-- Sugarcane and wheat crop up

-- Real GDP (market prices) recorded at 5.7%

-- Saving-Investment gap improves

-- Savings as percentage of GDP recorded at 14.6%

-- Gross fixed investment in agriculture, electricity and gas and transport and communications drops.

-- Food inflation YoY increased to 2.3%

-- Non-food inflation YoY decreased by one percent.

-- 2.52% BoP deficit

-- FDI improves by 38.8% in FY16.

-- Fiscal deficit mainly financed by domestic sources

-- Stock of domestic debt rises by Rs 1,236 billion

-- Interest payment on domestic debt shows YoY growth of 4.7 percent

-- External debt rises by $4.1 billion

-- Domestic debt as percentage of total revenue recorded at 29.9%

-- External debt as percentage of exports drops to 19.4%

-- Currency to deposit ratio recorded at 36.82%

-- Credit to private sector up by Rs 461 billion

Copyright Business Recorder, 2016