Pakistan's current account deficit dips 99%

[BHarwana]

• The deficit declined by 73.1 percent as it fell to $2.768 billion in first nine months (Jul-March) of the year 2019-20 as compared to deficit of $10.284 billion in the same period of last year.
• Balance of trade in goods also plunged by 31 percent from $14.68 billion in July-March 2018-19 to $21.261 billion in July-January this year.
• Pakistan exported goods and services worth of $22.5 billion in July-March this year as compared to exports valuing $22.6 billion in the comparable period of last year.

ISLAMABAD: The lockdown currently imposed around the world has affected the balance of payment in the country as it is reflected in the March, 2020 data in which the current account deficit shrank by 99 percent to $06 million as compared to $823 million in same month of the previous year.

On average, the deficit declined by 73.1 percent as it fell to $2.768 billion in first nine months (Jul-March) of the year 2019-20 as compared to deficit of $10.284 billion in the same period of last year, State Bank of Pakistan (SBP) Thursday reported.

The details show that current account balance without official transfers shrank to $3.15 billion in the corresponding period against $10.8 billion in the same period of last year, showing a decline of 71 percent.

Balance of trade in goods also plunged by 31 percent from $14.68 billion in July-March 2018-19 to $21.261 billion in July-January this year.

Similarly, balance of trade in services also narrowed by 30 percent to $2.44 billion as compared to $3.488 billion.

Workers' remittances in July-March 2019-20 also increased to $16.99 billion in nine months as compared to remittances of $16.032 billion recorded during same period of last year.

As a percentage of gross domestic product (GDP), the current account deficit narrowed by 1.3 percent in the first nine months of 2019-20 as opposed to 4.7 percent in the same period of last year.

Pakistan exported goods and services worth of $22.5 billion in July-March this year as compared to exports valuing $22.6 billion in the comparable period of last year.

The value of imported goods in the corresponding period was recorded at $32.9 billion, down 16.28 percent from $39.3 billion over corresponding period of last year.

https://www.brecorder.com/2020/04/23/591794/current-account-deficit-plunges-99pc-to-6mn-in-march/

 

[Pakistan Ka Beta]

Alhamdulillah .

 

[ali_raza]

it is god sent opportunity if we capitalize on it
reschedule the loans further
build up reserves to 30-40 billion
then we can safely open up the import sector for heavy growth
and announce heavy incentives for exports
we can get out of debts in couple of years if we play our cards well

 

[I S I]

Alhamdulillah .

It's because the businesses are closed. Hence Imports are at pause.

 

[That Guy]

I wonder if this has anything to do with the debt relief measures.

 

[Pakistan Ka Beta]

It's because the businesses are closed. Hence Imports are at pause.

I know Sir . But it will help us in these difficult times . But if u check exports are not effected thats why i said Thanks to ALLAH . Pakistan Zindabad .

 

[ziaulislam]

I know Sir . But it will help us in these difficult times . But if u check exports are not effected thats why i said Thanks to ALLAH . Pakistan Zindabad .

this old news..exports will sharply drop in next quarter..pakistan i sposed to go into recession first time in 50 years while other regional countries will have drop of 5-6% in gorwth

 

[aasimanwaar]

this old news..exports will sharply drop in next quarter..pakistan i sposed to go into recession first time in 50 years while other regional countries will have drop of 5-6% in gorwth

Why would Pakistan go in recession? What is recession? its not like GDP goes in negative one time for recession it has to go negative for multiple quaters. And it looks Pakistan will rise strongly after this financial year. Especially if construction sector does its job

 

[Syed1.]

It's because the businesses are closed. Hence Imports are at pause.

Likewise exports are at pause too.

 

[ziaulislam]

Why would Pakistan go in recession? What is recession? its not like GDP goes in negative one time for recession it has to go negative for multiple quaters. And it looks Pakistan will rise strongly after this financial year. Especially if construction sector does its job

why?
because your economy is based upon remittences and textile exports..
these two things will be hurt the most

 

[aasimanwaar]

why?
because your economy is based upon remittences and textile exports..
these two things will be hurt the most

Yes that's what I am saying if one time we go in negative does not mean it's recession. Recession means multiple quarters GDP stays in negative.

 

[ziaulislam]

Yes that's what I am saying if one time we go in negative does not mean it's recession. Recession means multiple quarters GDP stays in negative.

These two will not recover well within 2020..
You need to diversify exports reduce imports..
You can vastly reduce imports by focusing on renewable energy and food processing/diversification ..
Something completely ignored over last 10 years and only being partially addressed recently

Anyway 2023 will be bilawal year from what it seems he is establishment new poster guy..will spell disaster if he sticks to old pppp ways..lets hope he doesnt..we need consistent policies..education, r&d, diversification and exports..it isnt that complicated

 

[Dr-who]

These two will not recover well within 2020..
You need to diversify exports reduce imports..
You can vastly reduce imports by focusing on renewable energy and food processing/diversification ..
Something completely ignored over last 10 years and only being partially addressed recently

Anyway 2023 will be bilawal year from what it seems he is establishment new poster guy..will spell disaster if he sticks to old pppp ways..lets hope he doesnt..we need consistent policies..education, r&d, diversification and exports..it isnt that complicated

Plz eleborate why you think Bilawal is the new poster guy.
Just reading this gives me the shivers

 

[Ahmad Saleem]

These two will not recover well within 2020..
You need to diversify exports reduce imports..
You can vastly reduce imports by focusing on renewable energy and food processing/diversification ..
Something completely ignored over last 10 years and only being partially addressed recently

Anyway 2023 will be bilawal year from what it seems he is establishment new poster guy..will spell disaster if he sticks to old pppp ways..lets hope he doesnt..we need consistent policies..education, r&d, diversification and exports..it isnt that complicated

LOL

 

[RIP Pak LAW]

Razzak Dawood said by July end, Pakistan exports to fell by $3 to $4 billions.