Current Account Deficit Falls to $50 Million in February 2021

[miafridi]

The current account maintained an improving trend in February 2021 as the deficit narrowed down to $50 million from the previous levels of $210 million in January 2021 and $652 million in December 2020.

The staggering reduction in the deficit was supported primarily by the sustainable high inflows from the exports and remittances that had remained above $2 billion in the outgoing month of February, which significantly offset the ballooning bill for the imports.

According to the State Bank of Pakistan (SBP), the overall current account maintained a surplus level of $881 million during July 2020 and February 2021, backed by the initial months of the financial year that continued to add surplus values to the trade and current accounts.

Conversely, the current account recorded a huge deficit of $2.74 billion in July-February of the previous financial year, showing a very encouraging sign for the economy.

The SBP remarked that the surplus in the current account has been helped by continued strong growth in the workers’ remittances and a sustained recovery in exports since November 2020 in year-on-year terms, which more than offset the increase in the imports due to the shortages of domestic food and recovering economic activity.

On the one hand, the trade balance of goods and services showed a deficit of 12 percent or $1.9 billion to stand at $17.42 billion between July 2020 and February 2021. On the other hand, the remittances continued to show sustainable growth that recorded an increase of $3.6 billion from the last financial year to reach $18.7 billion during the period.

As the economy is set to recover and the GDP could grow by three percent as per the SBP’s latest forecast, the import bill is expected to grow further while the exports and remittances are likely to show sustainability which will ultimately result in a surplus level of the current account in the remaining months of the financial year.

However, as the third wave of the coronavirus pandemic is gripping various countries, the economy might follow a different trend than that of the present, depending on the performance and the resilience of the economic recovery and sustainability of the country.

https://propakistani.pk/2021/03/22/current-account-deficit-falls-to-50-million-in-february-2021/

 

[Young_Blood]

iss khushi ke khabar k baad to aata 20 PKR per kilo ho jana chahiay.. aur sugar 40 PKR per kilo... kiu k jab ye $22 billion tha to Aata 30 PKR per KG tha.. am i ryt brother?
agar nahi to gareeb awaam ka iss se kya faieda,, ?

 

[Kam]

iss khushi ke khabar k baad to aata 20 PKR per kilo ho jana chahiay.. aur sugar 40 PKR per kilo... kiu k jab ye $22 billion tha to Aata 30 PKR per KG tha.. am i ryt brother?
agar nahi to gareeb awaam ka iss se kya faieda,, ?

My friend, actually problem is not with the price of flour.
Prices will be never same. My father in my childhood used to bring wheat at Rs. 400/40kg.

Problem is in the rise of the basic income of the people. Population is rising.

Believe me, people who are complaining do not do any effort just keep blaming.

Wheat prices can never be the same in the inflation driven economics.

Yes Government can subsidized but for that Government need Fiscal account surplus.

Unfortunately, we are negative at both.

 

[CAPTAIN SOLO]

Increase production prices will go down

 

[Will_Bite]

iss khushi ke khabar k baad to aata 20 PKR per kilo ho jana chahiay.. aur sugar 40 PKR per kilo... kiu k jab ye $22 billion tha to Aata 30 PKR per KG tha.. am i ryt brother?
agar nahi to gareeb awaam ka iss se kya faieda,, ?

Why do we always look for instant gratification? CAD needs 4-5 years of stability before inflation will stabilize to realistic levels.

 

[miafridi]

iss khushi ke khabar k baad to aata 20 PKR per kilo ho jana chahiay.. aur sugar 40 PKR per kilo... kiu k jab ye $22 billion tha to Aata 30 PKR per KG tha.. am i ryt brother?
agar nahi to gareeb awaam ka iss se kya faieda,, ?

Pakistan main itni mehangai achanak nhi I, balkay yeh os $20 billion annual current account deficit ki wajah say I hai jo PML-N chorh kar gai thi. Pakistan kahan say poora karta $20 billion? Pakistan 1 1 billion k liye KSA, dubai, Qatar aur IMF ki mintay kar raha tah. Aur oska nateeja sab ne deka k Pakistan ko apni imports par qaboo paana parha, apni currency tareekhi devalue karna parhi, taxes lagana parhay etc etc.

So the answer to your question is :

Iska yeh faida hai k agar Flour 40/kg hai toh woh achanak 60/kg(or even 600/kg in case your country defaults on it's payments due to non availability of reserves) par shoot up nhi hoga, balkay 45/kg tak chala jaega like a normal inflation, warna toh agar deficit ziada ho toh govt ko majbooran ya toh nae taxes lagana parhtay hai(which increases the inflation) ya phir nae qarzay lena parhtay hai(jin par baad main sood bhi dena hota hai).

 

[Hate_Nooras]

Where is Rajarawal111?
Why didn't you post this? I bet you are hurting like hell. It's the Noora way, when PK does well you hurt. Your not patriots, you haraamis are worshippers of a crooked family.