Current Account Records a Surplus For The First Time in 2020

NasNY

Chief Minister (5k+ posts)
Current Account Records a Surplus For The First Time in 2020
By
Aamir iqbal
-
June 24, 2020
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Despite all you’ve heard about the economy recently, it isn’t doing so bad right now. The country reported an optimistic development as the current account reported an increase of $13 million in May 2020.

This is the second surplus reported in recent months. Previously, the current account reported a surplus of $99 million in October 2019 after a gap of four and a half years.
The surplus was due to lower imports compared with higher remittance inflows coupled with export receipts that reported a reduction in value which was much lower than expected by the economic managers.

According to the State Bank of Pakistan (SBP), the current account showed a surplus of $13 million in May. It reported a comparatively huge deficit of $530 million in April and stood at over $1 billion in the same month of last year.

A.A.H Soomro, managing director at Khadim Ali Shah Bukhari Securities told ProPakistani,
CURRENCY SHOULD STABILISE NOW NEAR RS. 165S. REDUCTION IS MORE IMPORT DRIVEN. AS CONSUMPTION INCREASES, DON’T EXPECT SURPLUSES. IT’S A BREATHER FOR THE GOVERNMENT COUPLED WITH ADB, IMF AND WB INFLOWS.
In May 2020, the balance of trade for commodities and services saw a decline of $ 1.612 billion whereas remittance inflows surpassed its value to stand at $1.87 billion which reflected the surplus position of the current account.

From July to May, the current account reported a deficit of $3.28 billion as compared to a deficit of $12.4 billion in the same period last fiscal year, showing a significant difference of 73% or $9.1 billion.

The overall balance of trade for commodities and services fell by 31% or $9.3 billion during the eleventh month of the ending financial year. During the period, exports of commodities and services stood at $20.5 billion and over $5 billion, on the other hand, the import bills of commodities and services stood at $38.8 billion and $7.7 billion respectively.
Remittance inflows stood at $20.6 billion in the period which provided major support to the current account’s position despite the lockdown in different countries.

Improving remittances and exports in the earlier months of the current financial year and then subsequent lowering of the import bill followed by oil expenses in later months contained the imbalance of payment.

As businesses are reopening throughout the world and Pakistan, the expenses under imports are likely to go up in the coming weeks, on the other hand, the export earnings might show a little growth along with remittance inflows.

The present government announced a support package earlier for businesses and industries and devised an incentivized policy to deviate remittances from informal to banking channels.

 
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Nadir Bashir

Minister (2k+ posts)
Well done PTI.............Although we managed it through loans.

But still very well done.

We need to focus on exports and further reduce imports. Razzaq Daood nation counts on you and i hope, you will not disappoint us.

Also I do not know why Shabbar Zaidi is gone, Shabbar Zaidi was doing a good job. FBR need to work on fiscal deficit. Its very important.
 

thinking

Prime Minister (20k+ posts)
And Arasto of ours medias doing shows on FWC issues.giving time to Shareef Mafias..Billo.
No body discuss this news..
 

Nadir Bashir

Minister (2k+ posts)
And Arasto of ours medias doing shows on FWC issues.giving time to Shareef Mafias..Billo.
No body discuss this news..
Dear ministers ny bhi drama bnaya hova hai..............
Khan sb must call them all on a dinner from his pocket and discuss and solve their disputes if those are not only in media.....................