NFA of banking system decreased by 33.4% in FY12

NFA of banking system decreased by 33.4% in FY12

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The NFA of the banking system has decreased by 33.4 percent in fiscal year2011-12.

01 September,2012 07:52 pm

The Net Foreign Assets (NFA) of the banking system has contracted significantly by Rs 260.3billion in fiscal year 2011-12 which depicts a decrease of 33.4 per cent against corresponding period.According to the State Bank (SBP) Net Foreign Assets of the banking system contracted by Rs 260.3billion during last fiscal which shows a decrease of 33.4 per cent compared to an expansion of Rs 235.0 billion showing an increase of 43.1 per cent during the corresponding period of previous year.Contraction in NFA is mainly due to reduction in State Bank of Pakistan foreign exchange reserves that arose from the widening of current account deficit and deteriorating capital and fiscal account surpluses.The Bank said the Net Domestic Assets (NDA) of the country had stood at Rs 1,224.2 billion during last financial year 2011-12 which depicts growth of 20.7 per cent against corresponding period of previous year.According to the State bank credit to Private Sector has shown positive growth with increase of Rs 235.4 billion showing growth of 7.5 per cent during 2011-12 as compared to Rs 121.3 billion during the corresponding period of pervious year.Government borrowing for budgetary support stood at Rs 1267.7 billion during last fiscal year indicating an increase of 48.7 per cent against Rs 590.2 billion during the corresponding period of previous year.