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Current Account Deficit Fell By 65% in January 2021

Morpheus

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Current Account Deficit Fell By 65% in January 2021

Posted 1 hour ago by Abdul Rahman



The current account deficit for the month of January 2021 was reduced by 65% to $229 million as compared to the value of $652 million recorded in December 2020.


On the month on month basis, it was reduced due to healthy inflows of remittances with high export receipts. A decline in total imports was also seen during the above-mentioned period.
Resulting, the overall current account stood at a handsome surplus of $912 million in the period of July to January 2020. The current account reflected a much better situation when it comes to the value of the same month of last year in which the deficit stood at $2.54 billion as per statistics of the State Bank of Pakistan.



In January 2021, 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 a gradual economic recovery, SBP commented.
A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities told ProPakistani,

The current account deficit should increase going forward given the opening up of the economy and resultant demand from consumer, machinery and food imports.
The trade deficit of goods and services was reduced to $1.115 billion during July-January as compared to $1.89 billion recorded in the corresponding period of the last year. The consistent growth of textile products and IT services supported the overall exports to maintain their steady growth over the period of seven months in the current financial year.
On the other hand, remittances continued to provide support to the current account with handsome inflows of $16.48 billion.

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Norwegian

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Current Account Deficit Fell By 65% in January 2021

Posted 1 hour ago by Abdul Rahman



The current account deficit for the month of January 2021 was reduced by 65% to $229 million as compared to the value of $652 million recorded in December 2020.


On the month on month basis, it was reduced due to healthy inflows of remittances with high export receipts. A decline in total imports was also seen during the above-mentioned period.
Resulting, the overall current account stood at a handsome surplus of $912 million in the period of July to January 2020. The current account reflected a much better situation when it comes to the value of the same month of last year in which the deficit stood at $2.54 billion as per statistics of the State Bank of Pakistan.



In January 2021, 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 a gradual economic recovery, SBP commented.
A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities told ProPakistani,


The trade deficit of goods and services was reduced to $1.115 billion during July-January as compared to $1.89 billion recorded in the corresponding period of the last year. The consistent growth of textile products and IT services supported the overall exports to maintain their steady growth over the period of seven months in the current financial year.
On the other hand, remittances continued to provide support to the current account with handsome inflows of $16.48 billion.

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Where is Pmln experienced team now?
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@Indus Pakistan @Zibago @Jazzbot @ghazi52 @Patriot forever @ziaulislam @Muhammad Omar @Mav3rick @syedtalhamaududi @BATMAN @POPEYE-Sailor @ejaz007 @Black.Mamba @Path-Finder
 

POPEYE-Sailor

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syedtalhamaududi

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Incase of disagreement by member, do not tag.

Regards
Zero growth, spiralling inflation. Finance minister from the IMF, head of state bank from IMF. Due to an adled economy the current out deficit Is positive then allegedly it's all good. In a developing economy this isn't positive as clearly in Pakistan's case.
Zero growth, spiralling inflation. Finance minister from the IMF, head of state bank from IMF. Due to an adled economy the current out deficit Is positive then allegedly it's all good. In a developing economy this isn't positive as clearly in Pakistan's case.
Indicating very little sctivity
IMF khan NIAZI is on his way out
 

Bilal.

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Not healthy. Cut some non essential imports and maintain a surplus. We have become like crack addicts need to sacrifice some of our luxuries.
 

Norwegian

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Zero growth, spiralling inflation. Finance minister from the IMF, head of state bank from IMF. Due to an adled economy the current out deficit Is positive then allegedly it's all good. In a developing economy this isn't positive as clearly in Pakistan's case.
So 18 billion USD current account deficit, minus 8 billion USD net international reserves was a sign of growing healthy economy?
B3DA5D60-7A38-4B61-B30D-07F8E0AA2F25.jpeg
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8B67A9B9-6A0D-49AA-8CE3-98BA9C9E82C0.jpeg

Indicating very little sctivity
IMF khan NIAZI is on his way out
Pakistan has been in IMF program more than 21 times prior to Imran Khan Niazi. What went wrong all those times if Pakistan's economy was doing great before him?
FEDB8A73-E703-4F0A-942E-8855C273C8ED.png
 

Valar.

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On the other hand, remittances continued to provide support to the current account with handsome inflows of $16.48 billion.
ok, so overall remittance are 16.5 B dollars in last 7 months. What about overall export vs import in last 7 months?
 

syedtalhamaududi

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So 18 billion USD current account deficit, minus 8 billion USD net international reserves was a sign of growing healthy economy?
View attachment 718844 View attachment 718845 View attachment 718846
Why is growth almost zero, in this model. Without growth there's no increase in employment, tax revenue etc surely this isn't healthy, I'm honestly asking. The head of the state bank now, is the same chap who headed Egypt's IMF program. Things there are in bad shape. Why will we be any different. Surely we need high growth and we need money for infrastructure to industrialise, so we can become like Turkey or even Vietnam. We were left behind in the 80s, 2000s and I really hope not now. I hope to see my country flourish before I die.
I love traveling, and believe me Istanbul in the early 90s was not too different from Karachi, maybe 5 years more advanced, but now they are in different universes. It makes me sad. But not hopeless
 

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