7 Almost 45% of the increase in trade deficit for FY06 stemmed from the rise in import bill for crude oil and petroleum products. Demand pressures are likely to grow further as the Government accelerates social and infrastructure programs, and segments of population and businesses benefit from the FY07 fiscal package.
Infrastructure sector programs, while ambitious, are absolutely needed as businesses are set to grow, capacities are being enhanced, new industries and sectors are being opened up and development of industrial parks and additional EPZs are in the offing. After a span of price stability, Pakistan continues to face inflationary pressures that emerged in late 2004 in response to an accommodative monetary policy.