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Pakistan Current Account Records a Huge Surplus of $424 million in July 2020

Bilal.

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August 24, 2020 (MLN): Pakistan’s current account balance has swung into a surplus of $424 million in July 2020.

Compared to the previous month i.e. June 2020, current account posted a deficit of $100 million.

This is the fourth monthly surplus since last October, and a significant improvement on the deficit of $613 million in the same month last year.

According to SBP, the strong turnaround is mainy due to a continued recovery in exports and record-high remittances with support from several policy and administrative initiatives by SBP and government. Moreover, exports sustained strong recovery, with MoM growth of further 19.7% in July'20 on top of 25.5% in June'20.

According to the latest data issued by SBP, the Exports of Goods during the month improved by $311 million, up by 20% MoM, however, Imports of Goods also increased by $70 million, up by 2% MoM, resulting in a 12% MoM improvement in Trade deficit as the rise in exports was larger than the imports.

The trade deficit of Goods on yearly basis also improved by 12% as imports declined by 13% YoY and exports also went down by 15%.

Trade balance in services, while still negative, also improved by 14% YoY to $362 million courtesy of a 9% YoY reduction in imports though the exports also decreased by 5% YoY. While on monthly basis, the trade deficit in services increased by 62% compared to $224 million in June’20 as imports of services jumped by 29% MoM and exports by 11% MoM.

Worker remittances during July’20 also improved notably by 36% YoY to $2.768 billion from $2 billion in July 2019. Whereas, compared to the month of June’20, worker remittances stood at $2.46 billion, showing a growth of 12% MoM.

 

Enigma SIG

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Pakistan needs a local manufacture policy. Nothing is being made in this country. Even chocolates are being imported from the UAE.
 

Imran Khan

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if just 3 years we maintain it for god sake . 110mn$ toilet papers import . motor bikes cars and mobiles imports breaking our neck .
 

Imran Khan

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Pakistan needs a local manufacture policy. Nothing is being made in this country. Even chocolates are being imported from the UAE.
we need to ban many imports useless imports slowly and then we can have forex reserves of 50bn with in 2-3 years . our current economic polices are scrap .
 

Enigma SIG

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we need to ban many imports useless imports slowly and then we can have forex reserves of 50bn with in 2-3 years . our current economic polices are scrap .
Should strive for local products whenever possible. I find it pretty sad that Pakistan doesn't have its own laptop / desktop manufacturing/assembling facility yet. All we do is import scrap and sell it. Heard that Dell was willing to setup a plant in PML-N's tenure when they had the laptop scheme going but it got shot down because the middle men wouldn't have made money out of it.
 

Bilal.

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I think banning is not the right approach. It just encourages smuggling. What we need to do is to promote local production for import substitution and at such competitive level that the imports are snuffed out.
 

N.Siddiqui

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Is this true ?

NO!!!

Pakistan makes and locally produces just about any food item, FMCG's industry is huge in Pakistan the local and intl' chain as well.

Pakistan main imports are...
  1. Machinery including computers: US$5 billion (13.3% of total imports)
  2. Electrical machinery, equipment: $4.6 billion (12%)
  3. Iron, steel: $2.3 billion (6.1%)
  4. Mineral fuels including oil: $2.2 billion (5.9%)
  5. Organic chemicals: $2 billion (5.2%)
  6. Plastics, plastic articles: $1.8 billion (4.7%)
  7. Cotton: $1.7 billion (4.4%)
  8. Manmade filaments: $1.5 billion (3.9%)
  9. Vehicles : $1.2 billion (3.1%)
  10. Oil seeds: $1 billion (2.7%)
Oil and petroleum is missing in the list or not properly mentioned.

The top imports of Pakistan are Refined Petroleum ($5.76B), Crude Petroleum ($4.16B), Petroleum Gas ($3.28B), Palm Oil ($1.98B),
 

Indos

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NO!!!

Pakistan makes and locally produces just about any food item, FMCG's industry is huge in Pakistan the local and intl' chain as well.

Pakistan main imports are...
  1. Machinery including computers: US$5 billion (13.3% of total imports)
  2. Electrical machinery, equipment: $4.6 billion (12%)
  3. Iron, steel: $2.3 billion (6.1%)
  4. Mineral fuels including oil: $2.2 billion (5.9%)
  5. Organic chemicals: $2 billion (5.2%)
  6. Plastics, plastic articles: $1.8 billion (4.7%)
  7. Cotton: $1.7 billion (4.4%)
  8. Manmade filaments: $1.5 billion (3.9%)
  9. Vehicles : $1.2 billion (3.1%)
  10. Oil seeds: $1 billion (2.7%)
Oil and petroleum is missing in the list or not properly mentioned.

The top imports of Pakistan are Refined Petroleum ($5.76B), Crude Petroleum ($4.16B), Petroleum Gas ($3.28B), Palm Oil ($1.98B),
Oil and petroleum is in Mineral fuels category which is in 4 place of your list
 

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