Current account posts deficit for second month

Rajarawal111

Chief Minister (5k+ posts)
KARACHI: The country for the second month in a row posted a current account deficit (CAD) of $229 million in January mainly due to surging imports, which is not a good omen for the government as it is striving to bring the CAD to zero.

On a month-on-month basis, the CAD shrank by 64.87pc from $652m in December 2020.

However, the current account for the first seven months of 2020-21 was still in positive with $921m though the size of the surplus had been declining each month.

The CAD in 7MFY20 was $2.5bn while for the whole FY20 it was recorded at $2.97bn.
The government has succeeded in bringing down the $20 billion CAD in 2018 to surplus this year so far, but the trend indicates that by the end of the FY21 the C/A could be in deficit.

The data showed that the imports have increased while the exports could not improve enough to bridge the trade gap. The data showed that the exports slightly dipped to $13.897bn during 7MFY21 against $14.446bn in the same period of last year.

However, the imports further increased to $27.639bn during 7MFY21 compared to $26.044bn. The balance on trade in goods showed the deficit as $13.742bn during the period under review compared to the deficit of $11.598bn in the same period of last year.

According to the SBP, the balance on trade in goods and services recorded a deficit of $14.875bn compared to the deficit of $13.491bn of last fiscal year.

The government has been providing several incentives to boost exports but the data shows the growth is slow and still less than the previous fiscal year. The textile earns 55 to 60 per cent of exports proceeds for the country but the poor performance of the cotton production badly hit the industry.

The textile millers said the imports of cotton could cost up to $3bn by end of the current fiscal year which means the trade gap would be further widened and ultimately the current account could post deficit. So far the textile millers have imported cotton worth more than a $1bn.

Financial experts said the January deficit was significantly lower than the deficit in December ($652m). If the deficit remains within the range of $200m to $250m per month, the current account deficit could be zero or negligible by the end of the fiscal FY21.

They said if the country comes out from the grey list of FATF both the foreign investment and exports will increase and likely to help the country maintain a current account surplus for the current fiscal year.

Published in Dawn, February 23rd, 2021

 
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Rajarawal111

Chief Minister (5k+ posts)
عمرانی باندروں کو آرام کرنے کا کچھ تو موقع ملا
ورنہ عمران خان ڈگ ڈگی بجائی جا رہا تھا اور یہ بیچارے ناچ ناچ کے ادھموے ہو رہے تھے


 

mskhan

Minister (2k+ posts)
KARACHI: The country for the second month in a row posted a current account deficit (CAD) of $229 million in January mainly due to surging imports, which is not a good omen for the government as it is striving to bring the CAD to zero.

On a month-on-month basis, the CAD shrank by 64.87pc from $652m in December 2020.

However, the current account for the first seven months of 2020-21 was still in positive with $921m though the size of the surplus had been declining each month.

The CAD in 7MFY20 was $2.5bn while for the whole FY20 it was recorded at $2.97bn.
The government has succeeded in bringing down the $20 billion CAD in 2018 to surplus this year so far, but the trend indicates that by the end of the FY21 the C/A could be in deficit.

The data showed that the imports have increased while the exports could not improve enough to bridge the trade gap. The data showed that the exports slightly dipped to $13.897bn during 7MFY21 against $14.446bn in the same period of last year.

However, the imports further increased to $27.639bn during 7MFY21 compared to $26.044bn. The balance on trade in goods showed the deficit as $13.742bn during the period under review compared to the deficit of $11.598bn in the same period of last year.

According to the SBP, the balance on trade in goods and services recorded a deficit of $14.875bn compared to the deficit of $13.491bn of last fiscal year.

The government has been providing several incentives to boost exports but the data shows the growth is slow and still less than the previous fiscal year. The textile earns 55 to 60 per cent of exports proceeds for the country but the poor performance of the cotton production badly hit the industry.

The textile millers said the imports of cotton could cost up to $3bn by end of the current fiscal year which means the trade gap would be further widened and ultimately the current account could post deficit. So far the textile millers have imported cotton worth more than a $1bn.

Financial experts said the January deficit was significantly lower than the deficit in December ($652m). If the deficit remains within the range of $200m to $250m per month, the current account deficit could be zero or negligible by the end of the fiscal FY21.

They said if the country comes out from the grey list of FATF both the foreign investment and exports will increase and likely to help the country maintain a current account surplus for the current fiscal year.

Published in Dawn, February 23rd, 2021

This is expected as the government tried to deal with wheat and other food item shortages, not a big deal, should balances itself out in next couple of months
 

kakamuna420

Chief Minister (5k+ posts)
what is your point? should we kiss the dengue brothers?
the country is run by IMF and their representatives are experts of MMT (Magic money theory).
The day you are in debt, you are out!!
 

kakamuna420

Chief Minister (5k+ posts)
یہ خبیث راجہ گدھ اتنا خوش ہو رہا ہے جیسے عمران پاکستان کا نہیں انڈیا کا وزیراعظم ہے۔۔۔۔ حالانکہ بکواس ہی کر رہا ہوگا۔
most people don't even know the basics of finance and economics. Otherwise, why would they become slaves to billos and shareefs
 

kakamuna420

Chief Minister (5k+ posts)
This is expected as the government tried to deal with wheat and other food item shortages, not a big deal, should balances itself out in next couple of months
If I were the minister, I would have borrowed tupolev planes and transport tons of food and other items to Russian and CIS countries.
 

Citizen X

Prime Minister (20k+ posts)
KARACHI: The country for the second month in a row posted a current account deficit (CAD) of $229 million in January mainly due to surging imports, which is not a good omen for the government as it is striving to bring the CAD to zero.

On a month-on-month basis, the CAD shrank by 64.87pc from $652m in December 2020.

However, the current account for the first seven months of 2020-21 was still in positive with $921m though the size of the surplus had been declining each month.

The CAD in 7MFY20 was $2.5bn while for the whole FY20 it was recorded at $2.97bn.
The government has succeeded in bringing down the $20 billion CAD in 2018 to surplus this year so far, but the trend indicates that by the end of the FY21 the C/A could be in deficit.

The data showed that the imports have increased while the exports could not improve enough to bridge the trade gap. The data showed that the exports slightly dipped to $13.897bn during 7MFY21 against $14.446bn in the same period of last year.

However, the imports further increased to $27.639bn during 7MFY21 compared to $26.044bn. The balance on trade in goods showed the deficit as $13.742bn during the period under review compared to the deficit of $11.598bn in the same period of last year.

According to the SBP, the balance on trade in goods and services recorded a deficit of $14.875bn compared to the deficit of $13.491bn of last fiscal year.

The government has been providing several incentives to boost exports but the data shows the growth is slow and still less than the previous fiscal year. The textile earns 55 to 60 per cent of exports proceeds for the country but the poor performance of the cotton production badly hit the industry.

The textile millers said the imports of cotton could cost up to $3bn by end of the current fiscal year which means the trade gap would be further widened and ultimately the current account could post deficit. So far the textile millers have imported cotton worth more than a $1bn.

Financial experts said the January deficit was significantly lower than the deficit in December ($652m). If the deficit remains within the range of $200m to $250m per month, the current account deficit could be zero or negligible by the end of the fiscal FY21.

They said if the country comes out from the grey list of FATF both the foreign investment and exports will increase and likely to help the country maintain a current account surplus for the current fiscal year.

Published in Dawn, February 23rd, 2021

Munna bohat zor ka aa raha hai na?

Chal shabash ker le, koi baat nahi

 

asus87

MPA (400+ posts)
Before IK become PM => FATF , CAD , State Bank etc => Ppl were like , who cares I am not an expert on Financial stuff



After IK become PM => Everyone be like, Yes like any Senior Journalist I am also a Senior Financial expert.



Dangar logon ko basic Maths bhi nai aati hogi aur chalien hai expert bannay
 

s.shahid

Politcal Worker (100+ posts)
KARACHI: The country for the second month in a row posted a current account deficit (CAD) of $229 million in January mainly due to surging imports, which is not a good omen for the government as it is striving to bring the CAD to zero.

On a month-on-month basis, the CAD shrank by 64.87pc from $652m in December 2020.

However, the current account for the first seven months of 2020-21 was still in positive with $921m though the size of the surplus had been declining each month.

The CAD in 7MFY20 was $2.5bn while for the whole FY20 it was recorded at $2.97bn.
The government has succeeded in bringing down the $20 billion CAD in 2018 to surplus this year so far, but the trend indicates that by the end of the FY21 the C/A could be in deficit.

The data showed that the imports have increased while the exports could not improve enough to bridge the trade gap. The data showed that the exports slightly dipped to $13.897bn during 7MFY21 against $14.446bn in the same period of last year.

However, the imports further increased to $27.639bn during 7MFY21 compared to $26.044bn. The balance on trade in goods showed the deficit as $13.742bn during the period under review compared to the deficit of $11.598bn in the same period of last year.

According to the SBP, the balance on trade in goods and services recorded a deficit of $14.875bn compared to the deficit of $13.491bn of last fiscal year.

The government has been providing several incentives to boost exports but the data shows the growth is slow and still less than the previous fiscal year. The textile earns 55 to 60 per cent of exports proceeds for the country but the poor performance of the cotton production badly hit the industry.

The textile millers said the imports of cotton could cost up to $3bn by end of the current fiscal year which means the trade gap would be further widened and ultimately the current account could post deficit. So far the textile millers have imported cotton worth more than a $1bn.

Financial experts said the January deficit was significantly lower than the deficit in December ($652m). If the deficit remains within the range of $200m to $250m per month, the current account deficit could be zero or negligible by the end of the fiscal FY21.

They said if the country comes out from the grey list of FATF both the foreign investment and exports will increase and likely to help the country maintain a current account surplus for the current fiscal year.

Published in Dawn, February 23rd, 2021

And would you like to enlighten us on CAD in first 7 months of sharifs last fiscal year, as opposed to $921 million surplus in first 7 months of this fiscal year?

 

Wake up Pak

Chief Minister (5k+ posts)
A fugitive convict left the CAD at $20 billion.

In Jan21, the current account deficit reduced to $229mn from $652mn last month. For the first 7 months of FY21, the current account surplus is $912mn, a significant turnaround from the deficit of $2,544mn during the same period last year. For details, see: https://sbp.org.pk/ecodata/Balancepayment_BPM6.pdf

Compared to Jan20, exports grew steadily while remittances continued their record expansion. Imports of wheat and sugar to address domestic shortages, and palm oil, were significantly higher. Machinery imports continued to grow at double-digits, reflecting economic recovery.
 

KMQ

Citizen
عمرانی باندروں کو آرام کرنے کا کچھ تو موقع ملا
ورنہ عمران خان ڈگ ڈگی بجائی جا رہا تھا اور یہ بیچارے ناچ ناچ کے ادھموے ہو رہے تھے


apni amme ki pic laga k kitna aacha mahsoos kar rahy ho.
 

Sonya Khan

Minister (2k+ posts)
Still far far better performance of PTI govt from the so-called experienced PMLN govt .....
The article is actually a charge sheet for PMLN’s poor performance .....
But woh patwari hi kia jo samajh jaye ......
 
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