Business

Pakistan’s current account deficit shrinks by 45% to $1.2bn

Published

2 years ago

Farwa

Decline in current account deficit largely reflects a sharp decline in energy imports.
“Narrower deficit is the result of wide-ranging measures taken in recent months,” SBP notes.
Primary reason behind yearly deficit is a decline in remittances.

KARACHI: The three-month import ban imposed by the coalition government bore fruits as Pakistan’s current account deficit — the gap between the country’s higher foreign expenditure and low income — shrank by a massive 45% month-on-month.

The current account deficit clocked in at $1.21 billion in July 2022 in comparison to a deficit of $2.2 billion (revised figure) in June, data released by the State Bank of Pakistan (SBP) showed.

“The current account deficit shrank to $1.2 billion in Jul from $2.2 billion in June, largely reflecting a sharp decline in energy imports and a continued moderation in other imports,” the central bank said in a brief note released on its Twitter handle.

“The narrower deficit is the result of wide-ranging measures taken in recent months to moderate growth and contain imports, including tight monetary policy, fiscal consolidation and some temporary administrative measures.”

1/2 The current account deficit shrank to $1.2bn in Jul from $2.2bn in Jun, largely reflecting a sharp decline in energy imports & a continued moderation in other imports. Visit #EasyData https://t.co/kiWKKJLduD pic.twitter.com/Kt3Ev5BjMt
— SBP (@StateBank_Pak) August 23, 2022

On a year-on-year basis, the primary reason behind the deficit was an 8% (yearly) decline in remittances along with a 0.4% (year-on-year) increase in total imports to $6.2 billion.

However, total exports increased by 4% year-on-year during July. Data showed that imports of goods stood at $5.39 billion in July, compared to $7.03 billion in June. At the same time, imports of services stood at $790 million in July compared to $1.32 billion in June.

Previously, widening the current account balance being an important indicator of Pakistan’s economy led to an outflow of US dollars, which had put additional pressure on the currency that has continued to struggle against the greenback.

SBP, PBS trade figures reveal discrepancies

However, the SBP and Pakistan Bureau of Statistics (PBS) trade figures revealed discrepancies. The data available showed that SBP imports exceed PBS imports in the first month of the fiscal year (July) — “a seldom event seen historically”.

According to the data released by the central bank, the total imports of the petroleum group clocked in at $2.4 billion while the figures of the bureau highlight the amount of $1.4 billion — reflecting a difference of $984 million.

Similarly, for the textile group, SBP data showed that the imports were around $379 million while PBS said that the imports clocked in at $309 million — which calculates to a difference of $70 million.

Business

There are US$13,280.5 million in foreign exchange reserves in Pakistan.

Published

6 hours ago

Farwa

According to a representative for the central bank, as of April 19, 2024, the nation’s total liquid foreign reserves were valued at US$ 13,280.5 million. A loss of US$74 million left the State Bank of Pakistan’s foreign reserves at US$7,981.2 million.

Commercial banks have $5,299.3 million in reserves for Pakistan.

In the week that concluded on April 12, the State Bank of Pakistan’s (SBP) foreign exchange reserves increased by $14.4 million to $8.055 billion.

“In a weekly statement, SBP stated that it has repaid US$ 1 billion in principal and interest on Pakistan’s International Bond, which matures this week.”

But at $13.374 billion, the nation’s total reserves decreased by $68 million. In the same way, commercial banks’ reserves dropped to $5.319 billion, a reduction of $82 million.

Business

NIMA seminar to increase Pakistan’s ship recycling industry’s capacity

Published

7 hours ago

Farwa

According to a release, important players from a range of maritime industries attended the conference to discuss issues facing the shipping sector.

It further stated that the symposium cleared the path for the resurgence of a sustainable future in ship recycling.

Participants in the conference included representatives of the Gadani Ship Breaking Labour Union, PSBA, KS&EW, KPT, PMSA, GEMS, and the federal and Balochistani governments.

Furthermore, global perspectives and ideas were offered by international specialists such as Rabia Razzaque from UN-ILO and Professor Raphael Baumler from the World Maritime University.

The seminar emphasized Pakistan’s capacity to emerge as a pioneer in the field of environmentally friendly ship recycling.

In order to protect the environment and the safety of employees, the participants emphasized the importance of following international standards and regulations.

During his speech, Chief Guest Senator Nisar Ahmed Khoro emphasized the importance of the maritime industry’s resurgence and the crucial necessity for coordinated efforts from all parties involved.

A new age of economic prosperity, worker safety, and environmental responsibility for Pakistan’s maritime industry was called for as he urged the stakeholders to work together on a comprehensive SENSREC program.

Vice Admiral Ahmed Saeed (Retd), the president of NIMA, emphasized the significance of environmental stewardship and safety in ship recycling procedures.

Business

Inflows into the Roshan Digital Account surged to $7.660 billion on March 24.

Published

7 hours ago

Farwa

According to the data, remittance inflows for the month of March totaled US$ 182 million, whereas they were US$ 141 million in February and US$ 142 million in January 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own Non-Resident Pakistan Origin Cards (POCs), can now engage in banking, payment, and investing activities in Pakistan with the help of these accounts, which offer cutting-edge banking solutions.

According to a statement from the State Bank of Pakistan, the number of accounts registered under the program increased by 11,091 from 668,701 accounts in February 2024 to 679,792 accounts in March 2024.

As of March 2024, the central bank reported that foreign nationals of Pakistan have invested US $312 million in Naya Pakistan Certificates, US $528 million in Naya Pakistan Islamic Certificates, and US $31 million in Roshan Equity Investment.

It is important to note that former prime minister Imran Khan introduced the Roshan Digital Account initiative in September 2020 with the goal of giving Pakistanis living abroad access to digital banking services for the first time.