Current Account Surplus Records its Highest Positive Spell in 15 Years

[Morpheus]

Current Account Surplus Records its Highest Positive Spell in 15 Years

Posted 5 mins ago by ProPK Staff

The current account maintained its historical rise showing a handsome surplus of $382 million in October, which is the fourth successive month in the current financial year 2020-21.
According to the State Bank of Pakistan (SBP), the current account surplus rose further to $382 million in October from $59 million in September, on the back of a sustained increase in remittances and a smaller trade deficit. Meanwhile, according to Arif Habib Ltd, this is the highest positive spell since July 2005.

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Since July, the cumulative current account surplus has reached $1.2 billion, reversing the $1.4 billion deficit recorded in the same period last year.

A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities, told ProPakistani,

The declining imports and high remittances keep the account very very comfortable. Eventually, imports would kick-in. It’s time for SBP to keep the excess supply in the pockets. Imports would increase sequentially; TERF-led machines, Autos, RLNG, and Vaccine imports. So far, monetary policy to remain status quo.

The trade deficit of goods and services dropped by 2.9 percent year-on-year during the period of July to October after a very long period. The deficit stood at $7.53 billion this year compared to $7.75 billion deficit recorded last year. The exports of goods and services stood at $7.35 billion and $1.62 billion in the last four months of FY21, whereas the imports of goods and services stood at $14.08 billion and $2.41 billion in the said period.

Remittances continued to surprise with double-digit growth of 26 percent year-on-year. It increased to $9.43 billion during July to October from $7.45 billion recorded in a similar period of the last year.

October proved to be good for the macroeconomic indicators including current account, remittances, strengthening of Rupee against Dollar, and inflows in foreign exchange reserves.

Federal Minister for Industries and Production, Hammad Azhar, through his Twitter account, said that Pakistan’s economy continues to improve. The trade deficit continues to shrink, and industrial production is showing strong growth.

Current Account Surplus Records its Highest Positive Spell in 15 Years

The current account maintained its historical rise showing a handsome surplus of $382 million in October, which is the fourth

propakistani.pk

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[ZAMURD]

Should get atleast surplus of 4 Bn USD in this FY.

 

[Imran Khan]

bring back our pride man

 

[Mrc]

Give us 3 year of surplus PTI I will vote for you again

 

[RIP Pak LAW]

 

[Baby Leone]

things will clear after the pandemic when world becomes normalize then we can say if it is because govt's good policy or external factor like pandemic.

FYI Bangladesh experiencing around 1 billion surplus a month because of the external situation.

 

[Pandora]

Keep this up PTI that is why i voted for you. It is the performance of this govt that will destroy PMLN and PPP. Even business community has started to realise that policies are the only way forward for them not destruction spell of Ishaq Dollar. There are several areas still to curtail our useless luxury import which can boost our CA in positive domain. It is not less than a miracle that during COVID Pandemic when economies shrinking and slowing down our economy got a boost. If we can sustain this expect a GDP growth around 3-4% next year.

 

[Patriot forever]

things will clear after the pandemic when world becomes normalize then we can say if it is because govt's good policy or external factor like pandemic.

FYI Bangladesh experiencing around 1 billion surplus a month because of the external situation.

That played a part but only a minor one. This is on the backdrop of significant reforms in banking sector pertaining to remittances, and incentives offered to industries, from power tariff rationalization, loans to improve capacity at 1-3%. Sound policy of tax refunds. Rupee at market valuation, and many more.

If these factors were not there is no way Pakistan can take advantage of situation, in fact we would have suffered more.
One more point is the COVID management by gov the best in the region also smart lockdown policy as against India's full out lockdown, and especially the broad support offered by SBP from loan rescheduling/deferment without penalties, offering support to retain the work force, drastic cuts in interest rates, no electricity charges for 3 months for small and medium sized retailers/enterprises and many more.

We excelled both in dealing with COVID as well as managing the economic fallout. Without this we would be in worse condition than India and Bangladesh because of severe imbalances in our economy and twin deficits. We never had significant room to maneuver if things got out of control.

 

[Kambojaric]

Very positive news. A prolonged period of macroeconomic stability is required for the Pakistani economy to expand in a sustainable manner in the future.

 

[ziaulislam]

Keep this up PTI that is why i voted for you. It is the performance of this govt that will destroy PMLN and PPP. Even business community has started to realise that policies are the only way forward for them not destruction spell of Ishaq Dollar. There are several areas still to curtail our useless luxury import which can boost our CA in positive domain. It is not less than a miracle that during COVID Pandemic when economies shrinking and slowing down our economy got a boost. If we can sustain this expect a GDP growth around 3-4% next year.

probably not
see economy doesnt work this way

we know that common men usually looks at two things,
growth and infaltion

the govt first 2 years were disastrous because of previous govt artificial low infaltion ofa round 2-3%

govt cannot keep inflation at 2-3%..it will still do atleast 5-6%..

why would someone vote for PTI when they would say nawaz shab had such a low inflation..

second problem is growth..i believe PTI will max out at 4% by 2023 i doubt we will go beyond 5%.. unless ofcourse we start doing fake note printing

leaders like Erdogan were successful based upon a strong base that sticks with him no matter what..

same way we have jiyala and matwala base..

but
IK base is very limited in KPK area..
south Sindh is wadara and peree based
while central punjab is matwala..
rural sindh is wadara/jiyala
and karachi..well they flip flop

he would need to take karachi, KPK & south sindh if he wants any chance of being the majority party

next time expect PPPP-PMLN to form an alliance in elections

things will clear after the pandemic when world becomes normalize then we can say if it is because govt's good policy or external factor like pandemic.

FYI Bangladesh experiencing around 1 billion surplus a month because of the external situation.

not at all a good comaprison
you are comparing an export based economy with import base economy

bengladesh exports are THREE TIMES if adjusted for GDP as compared to pakistan..
get that sunk in 300%

yes external factors are oil prices..once oil picks up this surplus wil be gone

 

[Norwegian]

bring back our pride man

Bring back Ishaq Dollar @Mav3rick @muhammadhafeezmalik

why would someone vote for PTI when they would say nawaz shab had such a low inflation..

Because there are limits to Khota Biryani consumption

second problem is growth..i believe PTI will max out at 4% by 2023 i doubt we will go beyond 5%.. unless ofcourse we start doing fake note printing

Low but sustainable real growth is much better than high but fake unsustainable artificial growth

leaders like Erdogan were successful based upon a strong base that sticks with him no matter what..

Nope. Erdogan is successful because he ruthlessly jailed all opposition, be it in the army, media, judiciary or parliament.

next time expect PPPP-PMLN to form an alliance in elections

They will be defeated as it happened in Gilgit Baltistan.

 

[Tomcats]

I would reccomend a read of this,

Pumping growth

The economy is full of air at the moment, and that is what is driving this ‘feel-good factor’.

www.dawn.com

 

[Norwegian]

I would reccomend a read of this,

Pumping growth

The economy is full of air at the moment, and that is what is driving this ‘feel-good factor’.

www.dawn.com

He is always projecting negativity no matter the news.

 

[PradoTLC]

Current Account Surplus Records its Highest Positive Spell in 15 Years

Posted 5 mins ago by ProPK Staff

The current account maintained its historical rise showing a handsome surplus of $382 million in October, which is the fourth successive month in the current financial year 2020-21.
According to the State Bank of Pakistan (SBP), the current account surplus rose further to $382 million in October from $59 million in September, on the back of a sustained increase in remittances and a smaller trade deficit. Meanwhile, according to Arif Habib Ltd, this is the highest positive spell since July 2005.

​

Since July, the cumulative current account surplus has reached $1.2 billion, reversing the $1.4 billion deficit recorded in the same period last year.

A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities, told ProPakistani,

The trade deficit of goods and services dropped by 2.9 percent year-on-year during the period of July to October after a very long period. The deficit stood at $7.53 billion this year compared to $7.75 billion deficit recorded last year. The exports of goods and services stood at $7.35 billion and $1.62 billion in the last four months of FY21, whereas the imports of goods and services stood at $14.08 billion and $2.41 billion in the said period.

Remittances continued to surprise with double-digit growth of 26 percent year-on-year. It increased to $9.43 billion during July to October from $7.45 billion recorded in a similar period of the last year.

October proved to be good for the macroeconomic indicators including current account, remittances, strengthening of Rupee against Dollar, and inflows in foreign exchange reserves.

Federal Minister for Industries and Production, Hammad Azhar, through his Twitter account, said that Pakistan’s economy continues to improve. The trade deficit continues to shrink, and industrial production is showing strong growth.

Current Account Surplus Records its Highest Positive Spell in 15 Years

The current account maintained its historical rise showing a handsome surplus of $382 million in October, which is the fourth

propakistani.pk

++++++++++++++++++++++++++

a good sign

but more needs to be done

 

[Tomcats]

He is always projecting negativity no matter the news.

Better than the sugarcoated material we are fed these days by the government, another perspective can help build a better picture as well to the reality at least.