Promoting product innovation In Pakistan, though derivatives have been a relatively new concept until recently, the derivative volume has increased manifold amidst the changing market and regulatory environment. In response to the evolving market dynamics and in order to develop an Over the Counter (OTC) financial derivatives market in the country, SBP issued Financial Derivatives Business Regulations in November 2004.
•  The lower level of investment during the recession translates into lower productive capacity. In addition, plant closures mean that some capital is effectively scrapped (although this is not fully reflected in the measured capital stock). •  Total factor productivity may either increase or decrease, at least temporarily.