New Market Research Report: Pakistan Country Risk Report Q2 2015

Core Views:

* Increased political stability is likely to result from the December 16 Peshawar school attacks in the near term, as opposition politicians come together to look for ways to fight the growing terrorist threat. Over the longer term, the government has an opportunity to tackle terrorism from a grassroots level as it looks to implement a 20-part National Action Plan to combat the spread of extremism.
* The Pakistani government's reform efforts are slowly bearing fruit, with efforts to reduce energy subsidies, broaden the tax base, and offload stakes in public sector enterprises all contributing to a substantially lower fiscal deficit in Fiscal Year 2013/14. We expect further progress in FY2014/15, which should see the fiscal deficit fall further to 5.1% of GDP.
* Lower oil prices and the ongoing reduction in government borrowing should allow the State Bank of Pakistan (SBP) to lower interest rates further over the coming months, as headline consumer price inflation (CPI) falls further. We expect another 50 basis point interest rate cut by the SBP in early 2015, and are forecasting CPI to average 4.5% in both Fiscal Year 2014/15 (July-June) and FY2015/16.
* Despite an improving current account position owing to a declining oil import bill, we believe that Pakistan's precarious reserve position will encourage the State Bank of Pakistan (SBP) to steer the rupee gradually weaker in order to build up a greater reserve buffer. The success of the government's privatisation drive, and progress on the crackdown on terrorism are also likely to be key drivers of the currency in 2015.
* Increased co-operation between Islamabad and Beijing, particularly in the area of energy infrastructure, should provide strong support to investment growth in Pakistan over the coming years. We see real GDP growth coming in at 4.0% in Fiscal Year 2014/15, from 4.1% in FY2013/14.
* The State Bank of Pakistan's increased efforts to boost the awareness of Islamic financial products...

Full Report Details at
- http://www.fastmr.com/prod/951908_pakistan_country_risk_report_q2_2015.aspx?afid=301

The Pakistan Country Risk Report helps businesses with market assessment, strategic planning and decision making to promote growth and profitability in Pakistan. It is an essential tool for CEOs, Chairmen, Finance Directors/CFOs, Managing Directors, Marketing/Sales Directors with commercial interests in this emerging market.

An influential new analysis of Pakistan's economic, political and financial prospects through end-2019, just published by award-winning forecasters, Business Monitor International (BMI).

Key Uses

* Forecast the pace and stability of Pakistan's economic and industry growth through end-2019.
* Identify and evaluate adverse political and economic trends, to facilitate risk mitigation.
* Assess the critical shortcomings of the operating environment that pose hidden barriers and costs to corporate profitability.

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