Financial Risk Manager

Ways of Financial and Risk Management

Money Market Updates

Money market inter bank opened at 13.80/13.90. Market remained near 13.55 and went on a high of 13.90 and closed at 14.00.

Forex Updates

Dollar Market interbank opened at 86.12/15 with a high of 86.19 and a low of 85.12. Market closed at 86.17/20.

General Updates

Inflation remained in double-digits in the four year term of the present government eroding the purchasing power of the country’s poverty-hit masses. With inflation forecasted to stay in double digit in FY12 it would be the first time in Pakistan’s history that the country would be observing consecutive five years of double-digit inflation. The overall Consumer Price Index (CPI) in Pakistan witnessed a massive increase of 76 per cent in last four years, thereby eroding the purchasing power of the masses. In the last four years average yearly inflation stood at 14.6 per cent as against an average GDP growth rate of a mere 2.9 per cent.

During the financial year 2011, Pakistan imported goods worth $27.777 billion from the Asian region, which is 76 per cent of the country’s total import of $36.379 billion. Compared to this tall figure, the country’s exports to the region could hardly reached $11.195 billion, which is just 40 per cent of imports from the region.

Even Pakistan’s close friends are getting large benefits while their imports from the country reflect poor and discouraging trade relations. China’s exports to Pakistan in FY-11 rose to $4.144 billion from last year’s $3.283 billion. However, China’s import from Pakistan remained stuck to just $1.645 billion, reflecting a serious gap which could be filled with better trade relations and market.