National current account: Net domestic assets stand at Rs1.2t

ISLAMABAD: The net domestic assets (NDA) of the country stood at Rs1.224 trillion during the financial year 2011-12 which depicts growth of 20.7% against the corresponding period of previous year. According to the State Bank of Pakistan, in the outgoing fiscal year, the net foreign assets (NFA) of the banking system contracted significantly by Rs260.3 billion reflecting a decrease of 33.4% against the corresponding period of previous year. Contraction in NFA is mainly due to reduction in foreign exchange reserves that arose from the widening of current account deficit and deteriorating capital and fiscal account surpluses. Credit to the private sector has shown positive growth with an increase of Rs235.4 billion showing growth of 7.5% during 2011-12 as compared to Rs121.3 billion during the corresponding period of previous year. Government borrowing for budgetary support stood at Rs1.268 trillion during the last fiscal year indicating an increase of 48.7% against Rs590.2 billion last year.

Published in The Express Tribune, August 23^rd, 2012.