1. Finance For Development

2. Fig 1: Consumer Price Inflation (Annual %)
Source: World Development Indicators

3. Fig 2: Current Account Balance (% GDP)
Source: World Development Indicator

4. Fig 3: Currency[1] to Deposit[2] ratio
Dec-16
Dec-17
Jun-18
Brazil
5.4
4.9
4.8
Malaysia
5.2
5.7
5.9
Sri Lanka
7.2
6.8
6.0*
Turkey
8.1
8.3
7.6
Philippines
9.1
9.3
9.5
Indonesia
11.5
11.3
12.2
Bangladesh
11.8
12.8
13.2
Peru
16.9
17.6
17.1
India
16.2
7.4**
14.6
Pakistan
33.1
34.1
36.2
Source: IMF Monetary and Financial Statistics
[1] Currency Outside Depository Corporations
[2] Transferable Deposits + Other Deposits
*Sep-17   ** Demonetization in Nov-16 
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5. Fig 4: Currency-to-Deposit Ratio (6 Month Moving Average)

6. Fig 5: Gross Domestic Savings (as % of GDP, 2017)
Source: World development Indicators

7. Fig 6: Bank deposits as a percentage of GDP (%)
2014
2015
         2016
Malaysia
       124.0 
               124.0 
               120.0 
India
         64.0 
                  64.0 
                  66.0 
Philippines
         60.0 
                  63.0 
Brazil
         52.0 
                  55.0 
                  59.0 
Bangladesh
         45.0 
                  45.0 
Turkey
                  44.0 
                  46.0 
Peru
         35.0 
                  37.0 
Indonesia
         33.0 
                  34.0 
Sri Lanka
         32.0 
                  35.0 
                  43.0 
Pakistan
         31.0 
                  30.0 
                  32.0 
Source: Global Financial Development
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8. Fig 7: Pakistan’s Relative Standing in Credit-to-GDP ratio (2010-17 Average)
Source: World Development Indicator

9. Fig 8: Net Budgetary Borrowing from Sched. Banks (% - GDP)

10. Fig 9: Shares of SME Financing in Total Financing
Source: SBP

11. Average debt maturity (years)* Who manages Public Debt
 Fig 10: Public Debt Management
Average debt maturity (years)*
Time period
Who manages Public Debt US
5.8
2017
Federal Treasury manages the debt, US Fed provides fiscal agency services, cost of which is reimbursed by The Treasury. 
Australia
7.4
The Australian Office of Financial Management (AOFM) was established as a separate agency within the Treasury portfolio from 1 July 1999. 
India
9.5
The government debt, including market borrowings, is managed by the Reserve Bank of India. The finance ministry is likely to set up a full-fledged independent public debt management agency by the end of 2018 to manage government borrowing program. 
Brazil
6.6
National treasury started managing domestic as well as external federal public debt in 2005.
South Africa*
12.8
The National Treasury is responsible for managing South Africa's national government finances.  
Pakistan
1.8
Finance Division, Ministry of Finance manages public debt of the Federation both internal and external.
*Data source: IMF

12. Fig 11: Corporate Bond Market Size (as % of GDP, 2018)
Source: Asiabondonline.com

13. Fig 12: Ownership Matters

14. Suggestions for Government Policy priorities:
1. Restructure of GoP domestic debt management and objectives, to widen distribution, and to develop liquid Sovereign yield curve. 2. Empower and facilitate current public sector development lenders – ZTBL, Housing, and SME – key aim is advisory effectiveness. 3. Mobilise apex Infrastructure lending organizations for raising Public/PPP debt in Project finance structure, versus issue of Government guarantees. 4. Facilitate financial inclusion via Digitization: digitize Government payments; licensing payment companies; fiscal concessions; permit use of global Cloud; crowd funding, etc. Fresh Spectrum auction must be at market clearing prices.

15. Government Debt Management:
DMO has been appointed, candidates sought for key supporting positions. DMOs operational targets should be to reduce reliance on Bank funding, from 82% to 50%; and increase debt maturity profile, from 1.6 to 3.5 years – within 2 years.

16. Development sector (Agri, SME, Housing):
International experience in major EMs shows that Public institutions lead, and private banks follow.
The reason is - these segments handicapped by limitations in “soft” and “hard” infrastructural support -
For example:
+ Product perishability, and distance from price discovery, for farmer reduces his ‘margin’ to subsistence level and reduces production efficiency;
+ SMEs need to be guided into clusters/supply chains, and partly be financed via factoring;
+ Mortgage finance requires clear title; repossession assurance; refinance and interest risk insurance etc.;
Supporting effort is best led by Institutions with Public stakeholder interest, and capacity to influence needed changes in rules, regulations, and laws.
Once development sectors enjoy this development and advisory support, Private banks will be willing to look at cash- flow based finance, and raise their lending profile.

17. Infrastructure:
Early establishment of Infrastructure Project Bank necessary: Key aims: + Redirect viable public sector projects into PPP mode, reduce expenditure loan of Government; + Project finance capability will spread to Private banks, deepening appetite for Industrial and private infrastructure lending; + Precondition for sustainability of long-term finance is existence of deep and liquid Sovereign yield curve, a core DMO responsibility.