Pakistan’s Current Account Deficit Reaches Its Highest Level in FY2022

[FOOLS_NIGHTMARE]

Pakistan’s current account recorded the highest deficit of $1.66 billion during the current financial year 2021-22 in October 2021 according to the statistics released by the State Bank of Pakistan (SBP) on Friday.

The current account deficit surged to $1.66 billion in October 2021 from $1.13 billion in September 2021 due to high energy prices and an uptick in services imports, despite some moderation in nonenergy imports.

Overall, the current account deficit stood at $5.08 billion from July to October 2021 as against the current account surplus of $1.33 billion reported in the same period the last year.

Economic Analyst A.A.H Soomro told ProPakistani,

The current Account is heating up despite depreciation & various demand-reducing measures by SBP & the govt. These levels are not sustainable amid rising demand growth & stubborn food & energy prices. It’s time for curb the demand & protect the precious dollars.

The trade deficit also surged to an alarming $14.8 billion at the end of October, widening by 97% percent from $7.51 billion in the same period of last fiscal year.

Remittances, on the other hand, posted double-digit growth of 11.9% year-on-year recording inflows of $11.5 billion.

The current account deficit is heating up despite depreciation and various demand-reducing measures by SBP and the government.

The government and the banking regulator imposed strict measures to contain the imports of the goods and commodities which are considered as non-essential. The impact could be further visible gradually in the coming months.

The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) on Friday raised the policy rate by 150 basis points to 8.75 percent from 7.25 percent.

The State Bank of Pakistani in the latest MPC Statement stated that “In Pakistan too, high import prices have contributed to higher-than-expected CPI, SPI, and core inflation outturns. At the same time, there are also emerging signs of demand-side pressures on inflation, and inflation expectations of businesses have risen on account of further upside risks from domestic administered prices.”

“With respect to the balance of payments, the current account deficits in September and October have been larger than anticipated, reflecting both rising oil and commodity prices and buoyant domestic demand. The burden of adjusting to these external pressures has largely fallen on the rupee”, the bank added.

Pakistan's Current Account Deficit Reaches Its Highest Level in FY2022

Pakistan's current account recorded the highest deficit of $1.66 billion during the current financial year 2021-22 in October 2021 according to the

propakistani.pk

 

[AZ1]

Thank you nawaz sharif for your great contracts

 

[Mentee]

Why have the fiscal liabilities increased (loans) increased from 26 trillion rupees to around 46 despite paying back a mammoth of an amount?


Hamara p.m chorr hai?

 

[HRK]

Hamara p.m chorr hai?

devaluation of PKR is one of the main reason

 

[Mentee]

devaluation of PKR is one of the main reason

To chorr kon hai , tax payer ?

 

[HRK]

To chorr kon hai , tax payer ?

trade deficit, policy of fix exchange rate of previous government, players of foreign exchange market.

 

[The Accountant]

Very sad state of affairs ... Such a big deficit is not sustainable...

We have to increase our production capacity. Thanks to our previous anti business and anti manufacturing policies Unfortunately our wealthy class is not interested in establishing manufacturing plants as a result again and again any attempt to increase economic result in influx in import. However in this particular period one of the major factor of increased import bill is commodity prices and freight cost. Alot of small trading business are becoming non viable due to 1000% increase in freight cost and dpubel increase in commodity prices ... For example cost of our own raw material has increased by 14% just on account of freight ... Now compare it with our import bill even if 50% of import is impacted then 7% increase in import is just on account of freight which accounts for almost 4 billion a year .... On the other hand commodities such as oil and steel has also doubled putting extreme pressure on payments ...

Current government is working on building up manufacturing capabilities but thanks to rotten bureaucracy we are doing too little and to late ...

This is the time our opposition and establishment needs to think its about survival of Pakistan so we should support government and do positive critisicim only ...

 

[bafxet]

Thank you nawaz sharif for your great contracts

What thank you NS? Is he in power? Are you afraid of asking this goofy PM who has virtually fooled everyone in the country with his so called wisdom. Ik sucks. Making a mockery of NS won't work he has to delivery to prove his worth, which he has miserably failed in doing so far.

 

[CriticalThought]

This is financial terrorism by the Bahia-Khan duo - plain and simple. Three years in power is enough time to get the deficit under check. But this treasonous duo is simply a continuation of the traitors Musharraf, Zardari and Nawaz, following the whims of the same foreign masters.

 

[AZ1]

What thank you NS? Is he in power? Are you afraid of asking this goofy PM who has virtually fooled everyone in the country with his so called wisdom. Ik sucks. Making a mockery of NS won't work he has to delivery to prove his worth, which he has miserably failed in doing so far.

This thread is for bughz Imran and cry patwaris.


We had $18 billion of trade deficit in 2018 which came down to $2 billion under imran khan. Now its increasing again due to cars import and machines etc along with our exports and remittances around $30 billion.

These will all balance out.


Even with this speed we would be standing trade deficit of $15 billion by 2022 end which would still $3 billion trade deficit less then what nawaz sharif did. With an increase in exports and increase in remittance by Imran khan, yeah I surely should ask him.


Where were you when nawaz looted the country and destroyed it?

 

[muhammadhafeezmalik]

devaluation of PKR is one of the main reason

PKR was devalued to increase exports and to decrease imports hence to decrease CAD, but it seems that this strategy has backfired.

 

[AZ1]

PKR was devalued to increase exports and to decrease imports hence to decrease CAD, but it seems that this strategy has backfired.

Yeah people are buying cars,bike like there is no tomorrow and we have threads running by patwaris that people can't afford.

 

[bafxet]

This thread is for bughz Imran and cry patwaris.


We had $18 billion of trade deficit in 2018 which came down to $2 billion under imran khan. Now its increasing again due to cars import and machines etc along with our exports and remittances around $30 billion.

These will all balance out.


Even with this speed we would be standing trade deficit of $15 billion by 2022 end which would still $3 billion trade deficit less then what nawaz sharif did. With an increase in exports and increase in remittance by Imran khan, yeah I surely should ask him.


Where were you when nawaz looted the country and destroyed it?

When asked what they have accomplished in last 40 month they dont tell what they have done inseat they bring NS into the discussion. The strategy of diverting the matter to NS has made the whole country sick and tired.

So the bottom line is that besides Poor Performance and lies they are immune to any sort of criticism. Unfortunate for the citizens of this country for the kind of government they have.

I dont know where you have pulled up these figures from. If you are madly in love with the goofy PM than please keep it yourself but please dont let it be at the expense of betterment of this country and it's people.

The projected trade deficit for 20-21 is:

Projected Export are .... USD 29 billion
Projected imports are ... USD 74 billion
Projected Trade deficit ...USD 45 billions

Current account deficit would be 15 billions.

Further, to meet IMF revenue target GoP allowed imports of car etc etc so as to collect the easy money of customs duty. Now when the things like exchange rate, inflation etc etc have spun out of control they are going back to place they started from... is it a joke?

Love Pakistannot any political party. Political parties come and go but betterment and progress if Pakistan is Prime.

 

[Zibago]

PKR was devalued to increase exports and to decrease imports hence to decrease CAD, but it seems that this strategy has backfired.

Record exports is a failed strategy

 

[AZ1]

When asked what they have accomplished in last 40 month they dont tell what they have done inseat they bring NS into the discussion. The strategy of diverting the matter to NS has made the whole country sick and tired.

So the bottom line is that besides Poor Performance and lies they are immune to any sort of criticism. Unfortunate for the citizens of this country for the kind of government they have.

I dont know where you have pulled up these figures from. If you are madly in love with the goofy PM than please keep it yourself but please dont let it be at the expense of betterment of this country and it's people.

The projected trade deficit for 20-21 is:

Projected Export are .... USD 29 billion
Projected imports are ... USD 74 billion
Projected Trade deficit ...USD 45 billions

Current account deficit would be 15 billions.

Further, to meet IMF revenue target GoP allowed imports of car etc etc so as to collect the easy money of customs duty. Now when the things like exchange rate, inflation etc etc have spun out of control they are going back to place they started from... is it a joke?

Love Pakistannot any political party. Political parties come and go but betterment and progress if Pakistan is Prime.

Projected remittance $31 billion you forget that blindly in bughz imran.

Pakistan to exceed $31 billion remittances target

Pakistan is on track to achieve a record $32 billion in remittance inflows in the current fiscal 2021-22 as its over nine million overseas workers remitted..

www.khaleejtimes.com

What nawaz has done in 30 years? where were the betterment of ppl al these times or you just woke up today? when pakistan was bankrupt?

Enjoy the video and dont pretend people just land in Pakistan today and start voting pti.

Record exports is a failed strategy

Yeah we should be 95% import and 5% export strategy so that we can achieve lebanon economy plan.