Pakistan registers current account surplus for second straight month: SBP

[miafridi]

Pakistan registers current account surplus for second straight month: SBP

KARACHI: Pakistan has registered a current account surplus for the second straight month, the central bank said in a statement issued Wednesday, on account of remittances sent in by the expatriates as well as cheaper imports.

In its statement, the State Bank of Pakistan (SBP) said the Current Account Balance (CAB) surplus "amounted to $508 mn and $297 mn during July and August 2020", respectively.

In addition, the cumulative current account surplus came in at $0.805 billion in the July-August 2021 period, as opposed to a deficit worth $1.2 billion in the comparable time frame, last year, the SBP said on Twitter.


"Efforts to attract workers’ remittances, flexible exchange rate and relatively benign import prices explain the improving current account balance," it added.

https://www.geo.tv/latest/309482-pa...eed:+geo/hegG+(Geo+Business+-+Geo+TV+Network)

 

[Will_Bite]

فزلرحمان: کرنٹ اکاؤنٹ خسارہ کم کر کے دوسرے ممالک کی معیشت کو نقصان پہنچایا جا رہا ہے.

نواز شریف: ہماری فیکٹریوں میں کام بڑھا کے دوست ملک چین کی فیکٹریوں کو نقصان پہنچایا جا رہا ہے.

زرداری: کرنٹ اکاؤنٹ سرپلس میں گھپلے نہ کر کے پیوپلز پارٹی کی ساکھ کو نقصان پہنچایا جا رہا ہے ​

 

[miafridi]

Current account deficit(CAD) is not a bad thing in itself but only when the country is generating enough revenue at home to balance the CAD with it's own revenue, rather than taking loans to balance the CAD. And if loan taking spree continues for longer period then it can take you into a debt trap.

 

[Kam]

This is what we are looking for.
CAD does not help you to make an independent policy and is responsible for inflation as well.

Once CAD and Fiscal are under control, inflation will come under control as well.
Our growth is stopped due to combination of CAD and Fiscal deficit. Government is not available with enough flexibility.

 

[CANSUK]

Patwaris aren’t understanding this Current Account Deficit.
CAD is piece of big puzzle, no doubt about it.

 

[Will_Bite]

Current account deficit(CAD) is not a bad thing in itself but only when the country is generating enough revenue at home to balance the CAD with it's own revenue, rather than taking loans to balance the CAD. And if loan taking spree continues for longer period then it can take you into a debt trap.

CAD is a bad thing. Just that it is a necessary evil.
Even with enough domestic revenue, you are buying a foreign currency to cover your payments, which pressurizes your own currency. Other countries survive not because they have enough domestic revenue, but because they have enough forex reserves.

 

[CaptainPakistan]

on the right track now!