1
Sources & Uses of Funds Non-Financial Private Corporate Sector in Pakistan
Flow of Funds and Price & Publication Division
Statistics & DWH Department
State Bank of Pakistan
FY18
The Team
Mazhar Hussain Senior Joint Director
Syed Aamir Ali Bokhari Joint Director
Fatima Javaid Assistant Director
Humaira Kiran Assistant Director
Contents
Introduction ........................................................................................................................................................... 1
Overview ............................................................................................................................................................. 1
Objective ............................................................................................................................................................. 1
Methodology ....................................................................................................................................................... 1
Assets and Liabilities of Non Financial Private Corporate Sector .................................................................... 1
Sources of Funds ................................................................................................................................................. 2
Sector-wise Borrowing of Non-Financial Private Corporate Sector ................................................................... 3
Share Capital Issued by Non-financial Private Sector ......................................................................................... 4
Debt Securities Issued by Corporate Sector ........................................................................................................ 5
Trade Credits (Liability) of Non-Financial Private Corporate Sector ................................................................. 5
Uses of Funds ...................................................................................................................................................... 6
Savings and Investment of Non-Financial Private Corporate Sector ............................................................... 7
Saving of the Sector ............................................................................................................................................ 7
Investment in Gross Capital Formations ............................................................................................................. 7
Financing of Savings and Investment Gap .......................................................................................................... 8
Consolidated Balance Sheet of Non-Financial Private Corporations FY18 ..................................................... 9
Annexure: Glossary/ Terminology Used .............................................................................................................14
Sources & Uses of Funds - FY18
1
Introduction
Overview
This study measures the contribution of non-financial private corporate sector to the flow of funds in the
economy. It also analyzes financial and non-financial behavior of the corporate sector. The study is based
on sectoral balance sheet of non-financial private corporate sector using data published in annual reports of
the corporations. The study is presented in two parts. First part of the report explains structure of the
sources and uses of funds by the corporate sector; second part summarizes the saving investment gap and
channels of financing it.
Objective
The main objectives of the report are:
To build comprehensive quality statistics to capture trends of corporate activities in the financial and
capital markets and to understand the broad structural features of the non-financial private corporate
sector for policy makers, researchers, business community and other stakeholders
To analyze trends in capital formation and its impact on expansion in general employment
To identify the sources and uses of funds of non-financial private corporate sector
To assess the effects of monetary policy actions with reference to financial and real investment in the
sector
To determine the origin and causes of saving investment gap and how to finance it
Methodology
The transformed data was acquired from annual accounts of joint stock companies listed at Pakistan Stock
Exchange (PSX) and some companies having foreign investment as on June 30, 2018. The relevant data
was extracted from balance sheets and notes to the accounts to prepare consolidated sectoral balance sheet
for private corporate sector. The estimates for the overall sector were prepared by multiplying a constant
factor calculated by total paid up capital registered with SECP as on June 30, 2018 and estimated
consolidated sectoral balance sheet for the overall non-financial private corporate sector in Pakistan.
However, the data on financial transactions with financial sector and rest of the world sectors collected
through different surveys is used in the analysis.
Structure of the Sources & Uses of Funds
Assets and Liabilities of Non-Financial Private
Corporate Sector. The balance sheet of corporate
sector comprises of financial and non-financial
assets, liabilities and shareholder’s equity. The
consolidated sectoral balance sheet for FY18 had
42.0 percent non-financial assets and 58.0 percent
financial assets. About 47.7 percent of total assets
in the corporate sector were financed by
shareholder’s equity, 28.2 percent by non-current
liabilities and 24.1 percent by current liabilities1.
1 Current liabilities include the liabilities due in short term say within one year.
9,489.28
13,103.83
10,781.50
5,438.89
6,372.71
0 4,000 8,000 12,000
Non FinancialAssets
Financial Assets
Shareholder Equity
Current Liabilitiy
Non CurrentLiability
billion Rs
Assets & Liabilities June, 18 End Position
Equity & Liability Assets
Sources & Uses of Funds - FY18
2
Table-1: Assets and Liabilities of Non-Financial Private Corporations
Billion Rupees
Component of Balance Sheet Opening Balance
FY18
Closing Balance
FY18
% Share in
FY18
YOY Change
%
Shareholder Equity 9,742.6 10,781.5 47.7 10.7
Current Liability 4,462.6 5,438.9 24.1 21.9
Non Current Liability 5,296.4 6,372.7 28.2 20.3
Total Liability & Equity 19,501.6 22,593.1 100.0 15.9
Non Financial Assets 8,428.8 9,489.3 42.0 12.6
Financial Assets 11,072.8 13,103.8 58.0 18.3
Total Assets 19,501.6 22,593.1 100.0 15.9
Sources of Funds
Non financial private corporations acquired funds from different sources for financing assets formation.
There are two major types of funds for financing. Some funds are generated within the sector through
savings and others are acquired from other sectors of the economy (externally generated funds).
Funds from Internal Sources
At the start of FY18, total internal funds in the
form of shareholder’s equity and provisions (non-
financial saving) of corporate sector were Rs
12,418.2 billion of total funds. An increase of
12.6 percent YoY basis was noted during the
review period and its share in total funds
generated by the private corporate sector was 61.9
percent in FY18. Among the internal sources,
shareholder’s equity accounted for 47.7 percent of
total sources during FY18. Provisions for
accumulated depreciation accounted for 14.2
percent of total sources during FY18.
Table-2: Sources of Funds of Private Corporate Sector
Billion Rupees
Sources of Funds
Opening Balance
FY 18
Closing Balance
FY 18
% Share in
FY 18
YOY Change
%
Internal Funds 12,418.2 13,984.1 61.9 12.6
Shareholder Equity 9,742.6 10,781.5 47.7 10.7
Provision for Depreciation 2,675.6 3,202.6 14.2 19.7
External Funds 7,083.4 8,609.0 38.1 21.5
Borrowing 4,570.1 5,596.5 24.8 22.5
Debt Securities 143.8 144.8 0.6 0.7
Trade Credit 961.6 1,169.2 5.2 21.6
Other Financing 1,407.9 1,698.4 7.5 20.6
Total Funds 19,501.6 22,593.1 100.0 15.9
10,781.50
3,202.60
5,596.5
144.8
1,169.2
1,698.4
0 4,000 8,000 12,000
Sharesholder Equity
Provision for Depreciation
Borrowing
Debt Securities
Trade Credit
Other Financing
billion Rs
Funds from Internal Sources in FY18
External Funds Internal Funds
Sources & Uses of Funds - FY18
3
Funds from External Sources
The non-financial private corporate sector relied
significantly on external sources of funds. The data
revealed that the external sources of funds
constituted up to 38.1 percent of the total sources.
Borrowing was the major source of acquiring
funds, which constituted 65.0 percent of total
external funds raised by the non-financial private
sector during FY18. Other sources of financing
include restricted deposits and other accounts
payable, which constituted 19.7 percent of total
external funds, while share of trade credit was 13.6
percent. The debt securities issued by corporate
sector had very low contribution of 1.7 percent in
total external financing and showed growth of 0.7
percent. Total external funds increased by Rs
1,525.6 to 8,609.0 billion or 21.5 percent YoY basis. Other financing increased by 20.6 percent from Rs
1,407.9 billion to Rs 1,698.4 billion during FY18. On the other hand, trade credits increased by 21.6
percent from Rs 961.6 billion to Rs 1,169.2 billion during the year.
Sector-wise Borrowing of Non-Financial Private Corporate Sector
Corporate sector acquired its funds mostly by
borrowing from different sectors during FY18. The
data reveals an increasing trend in the borrowing of
non-financial private corporate sector during the
review period. The borrowing of non-financial
private corporate sector increased by 22.5 percent
from Rs 4,570.1 billion to Rs 5,596.5 billion during
FY18. The sectors of the economy from where the
private corporate sector raised its funds included
banks, NBFCS, government, non-financial
corporations, non-resident and other resident
sectors. The data shows that the largest source of
borrowing was commercial banks. The share of
borrowing from banking sector was 79.0 percent of
total borrowing. The borrowing from banking
sector increased by 17.2 percent from Rs 3,775.0 billion to Rs 4,422.6 billion during FY18. The share of
borrowing from non-resident sector was 18.2 percent of total borrowing and showed an increase of 57.9
percent from Rs 644.9 billion to Rs 1,018.3 billion. The share of borrowing from non-financial
corporations was 1.4 percent of total borrowing, while the private corporate sector borrowed 1.1 percent
from other resident sector, 0.0 percent borrowed from government and 0.3 percent from non-banking
financial sectors of the economy.
65.0%
1.7%
13.6%19.7%
-
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
7,000.0
8,000.0
9,000.0
Borrowing DebtSecurities
Trade Credit OtherFinancing
bil
lio
n R
s
Percentage Share in Funds from External Sources
1.4%
79.0%
0.3%
0.0%
18.2%
1.1%
0 2000 4000 6000
Non Financial Corporations
Banks
NBFC's
Governament
Non-Residents
Other Resident Sector
billion Rs
Sector-wise Borrowing along with Percentage Share
Sources & Uses of Funds - FY18
4
Table-3: Channels of Borrowing of Non-Financial Private Corporate Sector
Billion Rupees
Sectors of Economy
Opening Balance
FY 18
Closing Balance
FY 18
% Share in
FY 18
YOY Change
%
Non-Financial Corporations 79.2 77.2 1.4 -2.5
Banks 3,775.0 4,422.6 79.0 17.2
NBFC's 12.7 17.1 0.3 34.8
Government 2.5 0.8 0.0 -69.4
Non-Residents 644.9 1,018.3 18.2 57.9
Other Resident Sector 55.6 60.6 1.1 8.9
Total Borrowing 4,570.1 5,596.5 100.0 22.5
Share Capital Issued by Non-Financial Private Sector
Share capital was the largest source of acquiring
funds by the non-financial private corporations to
fulfill their needs for assets formation. The
contribution of ‘share capital’ in total financing
raised by corporate sector was 32.5 percent during
the review period. The data reveals that the
issuance of share capital was increased by 10.1
percent from Rs 6,668.2 billion in the beginning
to Rs 7,344.3 billion at the end of FY18. The
sectors of the economy from where the corporate
sector raised its funds by issuing share capital
include non-financial corporations, banks, NBFCs
& insurance companies, government, non-resident
and household. The figures show that non-
resident sector increased its investment in
corporate sector’s capital during the review
period. It is important to note that the share of non-resident sector was 80.2 percent of total equity (shares
& other equity) issued by private corporate sector and it increased by 12.3 percent from Rs 5,244.2
billion to Rs 5,887.8 billion in FY18. There is an investment of Rs 614.3 billion by non-financial
corporaions and Rs 301.5 billion by household in share capital of non-financial private corporate sector
and showed growth of 4.1 percent & 4.5 percent respectively during the review period FY18.
Table-4: Share Capital Issued by Non-Financial Private Corporations
Billion Rupees
Sectors of Economy
Opening Balance
FY 18
Closing Balance
FY 18
% Share in
FY 18
YOY Change
%
Non-Financial Corporations 589.6 614.3 8.4 4.2
Banks 189.7 175.8 2.4 -7.3
NBFC's & Insurance 255.9 264.7 3.6 3.4
Government 100.3 100.3 1.4 0.0
Household 288.6 301.5 4.1 4.5
Non-Residents 5,244.2 5,887.8 80.2 12.3
Total Share Capital Issued 6,668.2 7,344.3 100.0 10.1
8.4%
2.4%
3.6%
1.4%
4.1%
80.2%
0 2000 4000 6000 8000
Non FinancialCorporations
Banks
NBFC's
Governament
Household
Non-Residents
billion Rs
Share Capital Issued in FY18
Sources & Uses of Funds - FY18
5
Debt Securities Issued by Corporate Sector
The non-financial private corporate sector raised
about 0.6 percent funds through issuance of debt
securities in the review period FY18. The data
reveals that the issuance was increased by 0.7
percent from Rs 143.8 billion to Rs 144.8 billion
at the beginning and at the end of FY18
respectively. The sectors included banks, intra
corporations and NBFCs & Insurance. Financing
under debt securities from banking sector was
dominant for the entire period with a share of 67.2
percent. It was increased by 7.3 percent from Rs
90.7 billion in the beginning to Rs 97.3 billion at
the end of FY18. About 15.7 percent of total
financing was obtained from non-financial
corporations and it decreased by 30.5 percent
from Rs 32.9 billion to Rs 22.9 billion during this
period. Where, 11.6 percent financing was obtained from NBFC’s & Insurance. The sector wise
distribution of securities issued by corporate sector is shown in Table-5.
Table-5: Debt Securities Issued by Non-Financial Private Corporations
Billion Rupees
Sectors of Economy
Opening Balance
FY 18
Closing Balance
FY 18
% Share in
FY 18
YOY Change
%
Non-Financial Corporations 32.9 22.9 15.8 -30.5
Banks 90.7 97.3 67.2 7.3
NBFC's & Insurance 12.2 16.8 11.6 37.3
Non-Residents 1.3 1.5 1.0 15.7
Other Resident Sector 6.7 6.3 4.4 -5.2
Total Debt Securities 143.8 144.8 100.0 0.7
Trade Credits (Liability) of Non-Financial Private Corporate Sector
It is the credit made available to a company by
another company for buying goods & services to
conduct its operations. In other words, trade credit
is “buy now”, “pay later”. The share of trade
credit in total external financing raised by non-
financial private corporations was 13.6 percent
during the entire year FY18 and showed an
increase of 21.6 percent from Rs 961.6 billion to
Rs 1169.2 billion.
15.8%
67.2%
1.0%
11.6%
4.4%
- 50.0 100.0 150.0
Non Financial Corporations
Banks
Non-Residents
NBFC's & Insurance
Other Resident Sector
billion Rs
Sector-wise Debt Securities in FY18
961.6
1,169.2
0
200
400
600
800
1,000
1,200
1,400
Opening BalanceFY 18
Closing BalanceFY 18
bil
lio
n R
s
Trade Credit of NFPC's in FY18
Sources & Uses of Funds - FY18
6
Uses of Funds
Investment of non-financial private sector
generally has two main components: investment
in financial assets and non-financial assets, i.e.,
gross capital formation. Gross capital formation
had the share of 42.0 percent in total uses of funds
during FY18. While non-financial private
corporate sector used 58.0 percent of its sources
for the acquisition of financial assets, including
currency & deposits having a share of 17.5
percent and it increased by 6.3 percent from Rs
3,728.7 billion to Rs 3,963.1 billion. The share of
‘other receivable’ in financial assets was 28.6
percent and increased by 26.7 percent from Rs
5,107.9 billion to Rs 6,471.6 billion for the period
under review. The share of ‘trade credits’ was 6.4
percent in the uses of funds and it increased by
30.3 percent from Rs 1,107.1 billion in the beginning to Rs.1,442.5 billion at the end of FY18. This sector
invested 3.6 percent funds in the acquisition of share capital of different sectors and it was increased by
3.7 percent from Rs 788.7 billion to Rs 817.5 billion during FY18. The composition of uses of funds of
non-financial private corporate sector is shown in Table-6.
Table-6: Composition of Uses of Funds of Corporate Sector
Billion Rupees
Use of Funds Opening Balance
FY18
Closing Balance
FY18
% Share in
FY18
YOY Change
%
Gross Capital Formation 8,428.8 9,489.3 42.0 12.6
Financial Assets 11,072.8 13,103.8 58.0 18.3
Currency& Deposits 3,728.7 3,963.1 17.5 6.3
Debt Securities 234.4 293.4 1.3 25.1
Loans Extended 106.0 115.7 0.5 9.1
Investment in Shares 788.7 817.5 3.6 3.7
Trade Credit 1,107.1 1,442.5 6.4 30.3
Other Receivable 5,107.9 6,471.6 28.6 26.7
Total Funds 19,501.6 22,593.1 100.0 15.9
9489.3
3963.1
293.4
115.7
817.5
1,442.5
6,471.6
0 4000 8000 12000
Gross CapitalFormation
Cash & Deposits
Debt Securities
Loans Extended
Investment in Shares
Trade Credit
Other Receiveable
billion Rs
Composition of Uses of Funds
Financial Assets Gross Capital Formation
Sources & Uses of Funds - FY18
7
Savings and Investment of Non-Financial Private Corporate Sector
Savings of the Sector
Savings of private corporate sector mainly has reserves
and surplus . Reserves & surplus are defined as amounts
retained in the business and not distributed to owners. It
includes retained earnings, current year result, valuation
adjustment, special reserve and general reserve. In most
cases, companies retain their earnings in order to invest
for future growth and expansion, such as buying new
machinery or spending money on more research and
development. The data reveals that total savings of
private corporate sector was increased by 11.8 percent
from Rs 3,074.3 billion in the beginning to Rs 3,437.2
billion at the end of FY18. The share of savings in total
funds generated by corporate private sector was 15.2
percent during FY18.
Investment in Gross Capital Formation
Investment in gross capital formation constituted
42.0 percent of total assets formation during the
review period. The data reveals that non-financial
private corporate sector mostly invested its funds
in fixed capital formation. A larger investment in
fixed assets is a good aspect from industrial
growth point of view, such as buying new
machinery and equipment, improving industrial
technology or spending the money on
construction of building & structure, which
creates more employment. Total gross capital
formation of corporate sector increased by 12.6
percent from Rs 8,428.8 billion to 9,489.3 Rs
billion during the review period FY18.
7,800.6
8,829.2
628.2 660.0
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Opening BalanceFY 18
Closing BalanceFY 18
bill
ion
Rs
Gross Capital Formation
Produced Assets Non-Produced Assets
3,074.3
3,437.2
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Opening Balance
FY 18
Closing Balance
FY 18
Bill
ion
Rs
Savings
Sources & Uses of Funds - FY18
8
Financing of Savings and Investment Gap
The investment in gross capital formation
by the corporate sector was higher than
savings, so it had to be financed through net
borrowing mainly from banking sector,
issuance of shares & equity, debt securities
and trade credit, etc. The savings and
investment gap of the corporate sector was
computed as the difference between
corporate investments (comprises both
capital expenditures and inventories) and
corporate savings (comprises retained
earnings plus reserves plus valuation
adjustments). The analysis of financing
sources in the corporate sector is difficult
because some of the funds come from
sector’s own saving (internally generated
funds). The data reveals that there was
saving of Rs 3,437.2 billion and gross
capital formation was Rs 9,489.3 billion.
This created a financing gap of Rs 6,052.1 billion, which indicate deficit equal to the net increase in
financial liabilities of the sector. It was financed by incurring financial liabilities owed to different
resident and non- resident sectors.
Table-7
Billion Rupees
Use of Funds Opening Balance
FY 18
Closing Balance
FY 18
YOY Change
%
Gross Capital Formation (A) 8,428.8 9,489.3 12.6
Savings (B) 3,074.3 3,437.2 11.8
Investment Saving Gap (A-B) 5,354.5 6,052.1 13.0
The main financial liabilities were loans, trade credits and debt securities etc, while main financial assets
were currency & deposits, loans, trade credits, debt securities and shares capital. Corporate loans
(inclusive of trade credit), issuance of shares and other payables were the largest cause of increase in
liability of corporate sector. The saving and investment gap was mostly financed by net loans (inclusive
of trade credit), while remaining gap was financed by issuance of shares, debt securities and net other
payables/receivables accounts during the reviewed period.
Gross Capital Formation,
8,428.8
Gross Capital Formation,
9,489.3
Savings, 3,074.3
Savings, 3,437.2
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Opening Balance
FY 18
Closing Balance
FY 18
Investment Saving Gap
6,052.1
5,354.5
Sources & Uses of Funds - FY18
9
Consolidated Balance Sheet of Non-Financial Private Corporations FY18
Million Rupee
Items Op_Bal Tra VC OCV Cl_Bal
Assets 19,501,589 2,462,969 651,936 -23,390 22,593,104
1. Currency and Deposits 3,728,697 222,844 14,325 -2,784 3,963,083
1. Currency 6,605 2,280 0 0 8,884
2. Transferable Deposits 2,358,272 136,436 11,622 -2,798 2,503,532
1. Deposit money institutions 2,243,607 119,350 0 -2,592 2,360,364
2. Nonresidents 114,665 17,086 11,622 -206 143,167
3. Restricted Deposits 575,755 81,422 234 0 657,410
1. Non-financial corporations 333,770 68,637 0 0 402,407
2. Financial corporations 236,896 16,939 0 -260 253,575
1. Deposit money institutions 236,896 16,939 0 -260 253,575
2. Other deposit accepting institutions 0 0 0 0 0
3. Financial intermediaries 0 0 0 0 0
4. Financial auxiliaries 0 0 0 0 0
5 Money Market Funds 0 0 0 0 0
6 Non Money Market Funds 0 0 0 0 0
7 Pension Funds 0 0 0 0 0
8 Captive financial companies 0 0 0 0 0
3. Central government 101 -64 0 0 37
4. Provincial & local governments 34 0 0 0 34
5. Non-residents 0 0 0 0 0
4. Other Deposits 788,065 2,707 2,470 15 793,257
1. Deposit money institutions 788,065 2,707 2,470 15 793,257
2. Other deposit accepting institutions 0 0 0 0 0
3. Nonresidents 0 0 0 0 0
2. Securities other than shares 234,447 58,958 0 0 293,405
1. Short-term 224,613 39,697 0 0 264,310
1. Non-financial corporations 91 0 0 0 91
2. Financial Corporations 11,532 -7,482 0 0 4,050
1. Deposit money institutions (Bankers' acceptance etc) 3 0 0 0 3
2. Other deposit accepting institutions 0 0 0 0 0
3. Other financial intermediaries 75 -8 0 0 68
4. Insurance and pension funds 0 0 0 0 0
5 Money Market Funds 11,454 -7,475 0 0 3,979
6 Non Money Market Funds 0 0 0 0 0
7 Pension Funds 0 0 0 0 0
8 Captive financial companies 0 0 0 0 0
3. Central Government 212,990 47,180 0 0 260,169
4. Provincial Governments' short-term securities 0 0 0 0 0
5. Local governments' short-term securities 0 0 0 0 0
6. Non-residents' short-term securities 0 0 0 0 0
2. Long-term 9,834 19,261 0 0 29,095
1. Non-financial corporations 1,250 716 0 0 1,966
2. Financial Corporations 3,264 2,370 0 0 5,635
1. Deposit money institutions (TFCs etc) 2,648 2,513 0 0 5,161
2. Other deposit accepting institutions (PTCs/TFCs/Bonds etc) 0 0 0 0 0
Sources & Uses of Funds - FY18
10
3. Other financial intermediaries (PTCs/TFCs/Bonds etc) 166 -15 0 0 151
4. Insurance and pension funds 0 0 0 0 0
5 Money Market Funds 69 -69 0 0 0
6 Non Money Market Funds 382 -58 0 0 324
7 Pension Funds 0 0 0 0 0
8 Captive financial companies 0 0 0 0 0
3. Central Government 12,451 928 0 0 13,379
4. Provincial Governments' long-term securities 0 0 0 0 0
5. Local governments' long-term securities 0 0 0 0 0
6. Non-residents' long-term securities 0 0 0 0 0
3. Loans extended 105,999 9,692 0 0 115,690
1. Short-term 14,043 5,258 0 0 19,301
1. Non-financial corporations 12,019 5,094 0 0 17,113
2. Households (Employees) 2,024 164 0 0 2,188
3. Non-residents 0 0 0 0 0
2. Long-term 91,955 4,434 0 0 96,389
1. Non-financial corporations 83,229 3,246 0 0 86,475
2. Households (Employees) 8,726 1,188 0 0 9,914
3. Non-residents 0 0 0 0 0
4. Shares and other equity 788,658 9,285 23,015 -3,441 817,518
1. Non-financial corporations 474,436 6,255 6,880 -1,557 486,014
2. Financial Corporations 234,482 3,909 0 -6,752 231,640
1. Deposit money institutions 65,492 3,560 0 -6,115 62,937
2. Other deposit accepting institutions 497 15 0 0 512
3. Other financial intermediaries 3,985 1,413 0 0 5,397
4. Insurance and pension funds 5,920 -175 0 -637 5,108
5 Money Market Funds 40,425 30,682 0 0 71,108
6 Non Money Market Funds 116,410 -29,833 0 0 86,577
7 Pension Funds 1,754 -1,754 0 0 0
8 Captive financial companies 0 0 0 0 0
3. Non-residents 79,740 -879 16,135 4,868 99,864
5. Insurance Technical Reserve 72,235 6,571 0 14,228 93,035
6. Other accounts receivable 6,142,737 1,161,648 516,712 0 7,821,097
1. Trade credit and advances 1,107,089 335,454 0 0 1,442,543
2. Others 5,035,648 826,194 516,712 0 6,378,554
Million Rupee
Items Op_Bal Transactions
VC OCV Cl_Bal Acc. Dep PV Acq Disp
7. Non-financial assets 8,428,816 1,431,859 437,888 97,883 -31,393 9,489,276 3,202,602 6,286,674
1. Produced assets 7,800,626 1,386,093 402,610 76,323 -31,189 8,829,244 3,166,358 5,662,885
1-Fixed assets 6,086,458 725,990 111,009 76,323 106,502 6,884,264 3,146,531 3,737,733
1.1 Dwellings 19,906 1,279 3,573 674 208 18,494 8,625 9,869
1.2 Other buildings and structures 647,299 118,708 3,340 6,096 16,000 784,763 271,433 513,330
1.3 Machinery and equipment 5,283,315 592,506 102,380 69,550 90,905 5,933,895 2,825,583 3,108,312
1.4 Weapons systems 215 15 1 0 0 230 189 41
1.5 Cultivated biological resources 2,903 200 52 2 -3 3,051 0 3,051
1.6 Intellectual property products 132,820 13,281 1,663 1 -608 143,831 40,700 103,131
3. Inventories 1,713,758 659,666 291,601 0 -137,691 1,944,133 19,828 1,924,305
Sources & Uses of Funds - FY18
11
4. Valuables 410 437 0 0 0 847 0 847
2. Non-produced assets 628,190 45,766 35,278 21,560 -205 660,033 36,244 623,789
1-Natural resources 458,929 40,202 23,024 19,842 -348 495,601 9,763 485,838
1.1 Land 457,736 40,109 23,015 19,842 -343 494,328 9,173 485,155
1.2 Mineral and energy resources 1,126 93 6 0 0 1,213 586 627
1.3 Non-cultivated biological
resources 0 0 0 0 0 0 0 0
1.4 Water resources 12 0 0 0 -5 7 4 3
1.5 Other natural resources 55 0 2 0 0 53 0 53
2-Contracts, leases and licenses 18,804 587 6,511 0 6 12,886 7,644 5,242
3-Goodwill and marketing assets 150,457 4,977 5,744 1,718 138 151,546 18,838 132,708
Million Rupee
Items Op_Bal Tra VC OCV Cl_Bal
Liabilities 19,501,589 2,462,969 651,936 -23,390 22,593,104
1. Restricted/ compulsory deposits 260,739 22,509 0 0 283,248
1. Non-financial corporations 78,883 10,489 0 0 89,372
2. Central government 0 0 0 0 0
3. Provincial & local governments 0 0 0 0 0
4. Household 181,855 12,020 0 0 193,876
5. Non-residents 0 0 0 0 0
2. Securities other than shares (Bonds/ debentures etc) 143,823 10,922 305 -10,249 144,800
1. Short-term 19,502 -1,097 107 -876 17,636
1. Non-financial corporations
2. Financial Corporations 12,825 -749 107 -876 11,306
1. Deposit money institutions 12,660 -626 107 -876 11,265
2. Other deposit accepting institutions 0 0 0 0 0
3. Other financial intermediaries 135 -94 0 0 41
4. Insurance and pension funds 30 -30 0 0 0
5. Money Market Funds 0 0 0 0 0
6. Non Money Market Funds 0 0 0 0 0
7. Pension Funds 0 0 0 0 0
8. Captive financial companies 0 0 0 0 0
3. Household 6,677 -348 0 0 6,329
4. Non-residents 0 0 0 0 0
2. Long-term 124,321 12,019 198 -9,373 127,165
1. Non-financial corporations 32,930 -10,043 0 0 22,888
2. Financial Corporations 90,133 22,062 0 -9,373 102,822
1. Deposit money institutions 78,050 17,374 0 -9,373 86,052
2. Other deposit accepting institutions 117 74 0 0 191
3. Other financial intermediaries 0 0 0 0 0
4. Insurance and pension funds 3,743 1,960 0 0 5,703
5. Money Market Funds 0 0 0 0 0
6. Non Money Market Funds 8,222 2,654 0 0 10,877
7. Pension Funds 0 0 0 0 0
8. Captive financial companies 0 0 0 0 0
3. Household 0 0 0 0 0
4. Non-residents 1,257 0 198 0 1,455
3. Loans (borrowings) 4,570,109 917,421 140,784 -31,791 5,596,524
Sources & Uses of Funds - FY18
12
1. Short-term 2,334,335 491,816 11,566 -892 2,836,825
1. Non-financial corporations 31,072 4,382 0 0 35,454
2. Financial Corporations 2,296,831 487,229 11,566 -892 2,794,733
1. Central Bank 0 0 0 0 0
2. Deposit money institutions 2,288,071 485,502 11,566 -892 2,784,247
3. Other deposit accepting institutions 0 0 0 0 0
4. Other financial intermediaries 8,707 1,704 0 0 10,411
5. Money Market Funds 50 25 0 0 75
6. Non Money Market Funds 3 -3 0 0 0
7. Pension Funds 0 0 0 0 0
8. Captive financial companies 0 0 0 0 0
3. Central Government 0 0 0 0 0
4. Provincial Governments 0 0 0 0 0
5. Local governments 0 0 0 0 0
6. Non-residents 0 0 0 0 0
7. Other resident sector 6,432 205 0 0 6,637
2. Long-term 2,235,775 425,605 129,219 -30,899 2,759,699
1. Non-financial corporations 48,194 -6,396 0 0 41,797
2. Financial Corporations 1,490,872 153,746 0 271 1,644,889
1. Central Bank 0 0 0 0 0
2. Deposit money institutions 1,486,973 151,063 0 271 1,638,308
3. Other deposit accepting institutions
4. Other financial intermediaries 3,896 2,685 0 0 6,581
5. Money Market Funds 0 0 0 0 0
6. Non Money Market Funds 3 -3 0 0 0
7. Pension Funds 0 0 0 0 0
8. Captive financial companies 0 0 0 0 0
3. Central Government 2,543 -1,766 0 0 777
4. Provincial Governments 0 0 0 0 0
5. Local governments 0 0 0 0 0
6. Non-residents 644,949 275,270 129,219 -31,170 1,018,267
7. Other resident sector 49,217 4,752 0 0 53,968
4. Other accounts payable 4,784,345 285,776 0 716,911 5,787,032
1-Trade Credit & advances 961,621 207,625 0 34 1,169,246
2. Accumulated depreciation 2,675,593 0 0 527,009 3,202,602
3. Other accounts payable 1,147,131 78,152 0 189,902 1,415,184
5. Shares and other equity 9,742,574 1,226,341 510,847 -698,260 10,781,501
1. Shares 6,668,229 428,471 479,850 -232,208 7,344,342
1. Non-financial corporations 589,639 21,688 0 2,959 614,286
2. Financial Corporations 445,565 38,979 0 -44,102 440,442
1. Deposit money institutions 189,709 17,517 0 -31,444 175,782
2. Other deposit accepting institutions 13,426 -629 0 0 12,797
3. Other financial intermediaries 1,451 20 0 -48 1,423
4. Insurance and pension funds 90,228 36,195 0 25 126,448
5. Money Market Funds 0 0 0 0 0
6. Non Money Market Funds 145,950 -15,440 0 -11,373 119,137
7. Pension Funds 4,801 1,315 -1,261 4,855
8. Captive financial companies 0 0 0 0 0
Sources & Uses of Funds - FY18
13
3. Central Government 57,832 -2 0 0 57,830
4. Provincial Governments 42,467 0 0 0 42,467
5. Local governments 0 0 0 0 0
6. Household 288,572 12,976 0 0 301,548
7. Non-residents 5,244,154 354,830 479,850 -191,065 5,887,769
2. Retained earnings 940,379 499,710 0 -405,384 1,034,704
3. Current year result 0 0 0 0 0
4. General and special reserves 2,134,450 298,160 0 -60,669 2,371,942
5. Valuation adjustments -484 0 30,996 0 30,512
This consolidated sectoral balance sheet is based on analyzed balance sheets of companies listed at PSX
as on 30th June, 2018 and raised with respect to total paid-up capital registered with SECP, then data
was replaced with actual data related to all financial and rest of the world sectors.
Sources & Uses of Funds - FY18
14
Annexure: Glossary/ Terminology Used
Assets
Assets refer to items controlled by the entity as a result of past events and from which future economic
benefits are expected to flow to the entity. These may consist of the following items,
1. Currency and deposits
2. Debt securities
3. Loans extended
4. Shares and other equity
5. Other accounts receivable
6. Non-financial assets
Non-Financial Assets
Entities that give its owners economic benefits by holding them or using them over a period of time are
called non-financial assets. Non-Financial assets consist of tangible assets, both produced and non
produced and intangible assets for which no corresponding liabilities are recorded.
a) Produced Assets
Produced assets are non-financial assets acquired as outputs from production processes. These are as
under:
i) Fixed Assets
ii) Assets that are used repeatedly, or continuously, in production processes for more than one year and
that may be tangible (dwellings, other buildings and structures, machinery and equipment, and
cultivated assets, such as livestock for breeding and plantations) or intangible (mineral exploration,
computer software, and entertainment, literary, or artistic originals).
iii) Inventories
Materials and supplies, work in progress, finished goods, and goods for resale.
iv) Valuables
Assets acquired and held primarily as stores of value.
b) Non-produced Assets
These are both tangible and intangible assets acquired through other than processes of production.
i) Tangible non-produced assets
Tangible non-produced assets include land, subsoil assets, water resources, etc.
ii) Intangible non-produced assets
Intangible non produced assets include patents, leases, and purchased goodwill.
Sources & Uses of Funds - FY18
15
Valuation Changes
Valuation adjustment represents the net opposite of all changes (Surplus / deficit on revaluation) in the
values of assets and liabilities on the balance sheets of a corporation except for valuation changes
recorded in the profit and loss accounts. The valuation adjustment is market valued by definition.
Liabilities
Liabilities are present obligations of the entity arising from past events, the settlement of which is
expected to result in an outflow from the entity of resources embodying economic benefits. These may
consist of the following items,
1. Restricted/ compulsory deposits
2. Debt securities
3. Loans (borrowings)
4. Other accounts payable
5. Shares and other equity
Total Shareholders’ Equity
Shareholders’ Equity refers to the shareholders’ residual interest in the assets of the entity after deducting
all its liabilities. Shareholders’ equity comprises mainly share capital, retained earnings/accumulated
losses and other reserves. Shareholders’ equity is recorded at nominal or book value.
Share Capital
Share capital refers to the amount contributed by shareholders through the issue of shares. There are
several types of shares, including common stock, preferred stock, treasury stock, and dual class shares.
Preferred shares have priority over common shares in the distribution of dividends and assets.
Retained Earnings
All earnings (after-tax profit) from the overall operations of the corporations less any amount allocated to
general and special reserves, which is established as a capital cushion to cover operational and financial
risks of the corporations.
General and Special Reserves
General and special reserves are capital redemption reserves, profit prior to incorporation, share premium,
statutory reserves and appropriations of retained earnings. General and special reserves should be valued
as the nominal amount of earnings that have been retained.
Internal Sources
Funds generated from within the sector as reserves & surplus, provisions, etc.
External Sources
Funds generated from out of the sector, e.g., borrowing, deposits, issuance of securities, shares, trade
credit and other.