Review of Developments in the Pakistan Economy

Abstract

The food supply position in the country was visibly comfortable during the period January-March 1962. However, cotton and jute markets were characterised by weak business sentiment owing to lack of adequate foreign demand and in the case of cotton, accumulating stocks at Karachi tended to depress prices. On the other hand, tea prices ruled firm at Chittagong auctions. In the industrial sector, a significant pick-up in production in a number of industries was discernible. At the same time, the short-term money market at Karachi witnessed acute stringency. Considerable increases were shown in money supply, deposit money and bank credit. A slight improvement in the deficit balance on current account was recorded following a larger increase in exports than imports. Meanwhile, there were some increases in the Cost of Living Indices for Karachi, Lahore and Narayanganj.