Presenters: Ambreen Bakhtawar

European debt crisis•  A multi-year debt crisis that has been taking place in

the European Union since the end of 2009

• Causes of the debt crises varied.

• Main cause: The structure of the euro zone as a currency union (i.e., one currency) without fiscal union (e.g., different tax and public pension rules) contributed to the crisis and limited the ability of European leaders to respond.

Impacts of Euro crisis

• Asia’s banks and financial institutions may exposure to government bond of eurozone periphery countries at the heart of euro crises.

• Exports declined.• Eurozone may cutback their lending

to Asia.

Investors look to pull out of Europe, they would be interested in this region. As developing markets we have the potential to offer them a safer and higher

rate of return on their investments.”

“In the case of Pakistan, however, there is an urgent need for structural reform before we can be in a position to attract inflows from foreign investors

looking to limit their exposure to Europe.

SBP Governer Yaseen Anwar

The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

•A contraction in the global economy affects the level of country’s exports, foreign direct investment and home remittances adversely.

• Pakistan’s annual exports in fiscal year 2013-14 were $25 billion out of which one third were to Europe.

What Can be Impacts???

• Exports would increase.• Return on investments can increase.• So, it would be step to prosperity.

ThankYou