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Pakistan
- The SBP has amended the Prudential Regulations for Corporate and Commercial Banking with a view to providing greater flexibility to banks and development finance institutions (DFIs). Under the amendment, the current limit of $ 250,000 for issuance of unsecured guarantees by banks and DFIs in Pakistan against the counter guarantees of banks situated in foreign countries, not meeting the prescribed rating of at least “A” has been raised to $500,000, if tenor of such guarantees is up to one year.
- According to SBP, net foreign investment during the first ten months of the current fiscal (July-April 2011-12) fell by 64.7% to $ 563 mn against $1.595 bn in the same period last fiscal .The total foreign direct investment (FDI) fell to $ 666.7 mn against $1.293bn while portfolio investment recorded an outflow of $76.1 mn against an inflow of $ 328mn during the above periods.
- According to Pakistan Automotive Manufacturers Association, total sale of cars during July-April 2011-2012 stood at 124,332 units against 112,297 units in the same period last fiscal.
International
- The 17- nation eurozone economy is expected averagely to contract by 0.3% this year and then grow by 1.0% in 2013 enbloc. Unemployment in the region as a whole would average 11% of workforce both in 2012 and 2013.
- The People’s Bank of China, the central bank of the country, has reduced the reserve requirement ratio (RRR), the amount banks must keep with the central bank, by 50 basis points (bps) to 20.0 % from 20.5%. The cut has come in the wake of inflation easing to 3.4% in April against 3.6 % in March and lower than anticipated bank lending needed to spur growth.
- The Bank of Thailand, the central bank of the country, has left its key lending rate unchanged at 3.0% for the second consecutive meeting. It has forecast headline (CPI) and core (NFNE) inflation at 3.5% and 2.5% respectively against 3.4% and 2.4% in 2011. GDP growth is projected at 6.0% this year.
- Malaysia’s central bank has left its key lending rate unchanged at 3.0% with inflation easing to 2.1% in March having peaked at 3.5% last June.
- Hong Kong’s economy grew by 0.4%, year-on-year, in the first quarter this year against 3.0% in the last quarter of 2011. The government expects GDP growth in 2012 to range between 1.0-3.0 % against achieved 5.0% last year.
