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Current account deficit declines to $8 million in September

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1 year ago

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KARACHI: Pakistan’s current account deficit narrowed to $8 million in September, a 98% drop from last year, as remittances from overseas Pakistanis and lower imports boosted the country’s external balance, The News reported Friday citing the State Bank of Pakistan (SBP) data.

As per the data, Pakistan registered a deficit of $360 million in September 2022. In September of this year, the current account deficit decreased by 95% on a month-on-month basis. The shortfall was $164 million in August.

Despite the nominal deficit reported by the country, analysts had predicted a surplus in the current account balance.

“The improvement (in CAD) has come mainly due to higher remittances and lower imports,” said Fahad Rauf, the head of research at Ismail Iqbal Securities.

“The remittances are expected to increase further in October as the gap between open market and interbank has been addressed,” Rauf added. “We expect the CAD to remain low and might turn into a surplus in October.”

The country’s trade deficit fell 46.85% to $1.518 billion in September compared to the $2.856 billion it registered a year earlier.

According to the SBP’s data, Pakistan’s total imports declined 19% year-on-year to $4 billion in September. While the imports declined by 7% on a monthly basis.

With a 2% increase to $2.474 billion in September from $2.437 billion in September of last year, total exports indicated a little improvement. September’s exports increased by 2% on a month-on-month basis.

Remittances rose to $2.2 billion in September from $2.5 billion in the previous month. These inflows saw a 11% increase over the same month last year. 

In the first quarter of this fiscal year, the nation recorded a $947 million current account deficit, which is 58% less than it was a year earlier.

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Business

Issues Affecting Pakistan’s Textile Mills Industry: The Government Is Determined To Address Textile Industry Concerns: FM

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Muhammad Aurangzeb, minister of finance, has stated that the government is firmly committed to helping the textile industry in every way possible.
He made this pledge today in Islamabad during a meeting with the All Pakistan Textile Mills Association’s leadership.
In order to guarantee the long-term sustainability and future expansion of Pakistan’s industrial sector, the Minister also reaffirmed the government’s commitment to addressing important tax, energy, and funding challenges.
He welcomed the APTMA office-bearers and gave the delegation his word that the government is committed to resolving the issues facing the textile industry since it understands how important it is to Pakistan’s economy.
Muhammad Aurangzeb underlined that resolving the fundamental issues facing the sector is essential to establishing an atmosphere that is favorable for industrial expansion, promoting economic stability, and bolstering the country’s overall growth trajectory.

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Business

As the MPC meeting draws closer, stocks rise.

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3 days ago

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On the final working day of trading, the Pakistan Stock Exchange (PSX) maintained its optimistic trend.

After rising more than 900 points, the benchmark KSE-100 index stabilized around 114,684 points.

The forthcoming Monetary Policy Committee (MPC) meeting on March 10 is allegedly connected to the bullish trend.

Recall that the KSE-100 index gained over 1,400 points on Thursday before closing at 113,713 points.

The greenback, on the other hand, dropped Rs0.07, from Rs279.82 to Rs279.75.

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Business

FBR to Enhance Revenues: Enacts Significant Reforms, Attains Record Revenue Collection

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4 days ago

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The Federal Board of Revenue has effectively executed significant reforms in the past year, enhancing tax administration, compliance, and digital transformation under the leadership of Prime Minister Shehbaz Sharif.
The FBR implemented AI-driven risk identification algorithms to improve tax audits and introduced a customer relationship management dashboard for real-time compliance monitoring.
Moreover, AI-driven Customs Intelligence and digital invoicing systems have transformed tax collection and customs operations.
The implementation of faceless customs assessment has markedly diminished clearance waits, optimizing international trade.
The unified sales tax return has streamlined the tax filing procedure, while the continuous advancement of a tier-3 data center seeks to enhance data security and AI-driven surveillance.
To enhance transparency, the FBR digitized its litigation management system for faster dispute resolution.

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