The money supply didn grow by much this year; but its growth remained highly skewed towards high powered money creation. Data for all but the last week of FY12 shows government borrowing from the State Bank of Pakistan is approaching Rs600 billion, close to the amount of money printed in 2008.
The curtain closed on cement dispatches for FY12 with robust growth seen in June. With over three million tons of cement dispatched in June alone, the month recorded the second highest monthly dispatches this fiscal year, second only to March.
It appears that Pakistan may finally be in a position to sell the exportable surplus of wheat, as an upward trend is being witnessed in the commoditys export prices. Infeasibility of wheat exports-due to unfavorable price differential between pricier local wheat and international trade-has kept Pakistan from exporting its surplus wheat produce in recent years.
The countrys economic pain continues to bring hunger pangs to the land. The acidic reality needs no certification. Double-digit inflation consecutively for years and escalating edible prices has brought down the purchasing power of people massively.
Despite witnessing a 20 percent increase in the volume traded over last year, world cotton trade has remained fairly pessimistic with global cotton mill usage going down by 7 percent to 22.7 MTN during 2011-12; a significant eight-year low.
When the UK Financial Services Authority slammed a 290 million pound fine on Barclays PLC, the controversy was just starting. The Banks retort set the kettle on fire, appearing on the Barclays official website through a statement alluding then-COO believed authorities had sanctioned fixing of Libor rates.