PML-N left Current Account Deficit of $19B, where does it stand today???

desan

President (40k+ posts)
In line with market expectations, the current account deficit – gap between country’s higher foreign expenditure and low income – narrowed to a nominal $6 million in March 2020 mainly due to a speedy deceleration in imports in the wake of the coronavirus pandemic.

The current account deficit is 99% down compared to $823 million recorded in March 2019, the State Bank of Pakistan (SBP) reported on Thursday. “Import of goods and services both have dropped drastically…due to lockdowns globally,” Arif Habib Limited (AHL) Head of Research Samiullah Tariq told The Express Tribune.

The import of goods decreased as aggregate demand fell massively ahead of an anticipated contraction in the national economy in the current fiscal year ending June 30, 2020. The country would see the contraction for the first time in 68 years in response to the Covid-19 crisis.

The import of services declined due to the suspension of international air travel in response to the health crisis. “Earlier, travel expenses used to be the cause for widening of the current account deficit,” Tariq said.

The import of goods decreased 19.25% to $3.32 billion in March compared to $4.11 billion in the same month of last year. The import of services dropped 25% to $624 million compared to $829 million.

Exports fell almost 11% to $1.81 billion in the month under review compared to $2.04 billion last year. Workers’ remittances, fortunately, increased over 9% to $1.89 billion compared to $1.73 billion last year.

 

Will_Bite

Prime Minister (20k+ posts)
Poor countries and developing countries like Pakistan stand to gain the most from this sad pandemic..and countries like US and EU countries are the ones who stand to lose the most.

Pak needs to vitalize its manufacturing sector in time for the recovery process..otherwise it will all be a waste.
 

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