Business

Current account deficit declines to $8 million in September

Published

1 year ago

Farwa

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.

Business

The NORINCO Group is invited by CM Sindh to explore opportunities.

Published

17 hours ago

Farwa

Chinese companies have been invited by Sindh Chief Minister Syed Murad Ali Shah to visit Karachi and other regions of Sindh Province in order to observe the quickly growing businesses and investigate prospects in fields like clean energy, infrastructure development, and public transit projects.

Speaking in Beijing to a delegation headed by the chairman of NORINCO International Co., Ltd., he stated that all facilities required would be provided by the governments of Sindh Province and Pakistan.

With assistance from NORINCO International, the Sindh Chief Minister stated that the Provincial Government will firmly urge North Vehicle and BeiBen to think about setting up a Vehicle Assembly Plant in the Dhabeji Special Economic Zone.

Business

A deal with Pakistan to fight financial crimes has been approved by the Saudi cabinet.

Published

17 hours ago

Farwa

In order to strengthen collaboration in the fight against money laundering, terrorist financing, and associated crimes, the Saudi Press Agency announced this week that the Saudi cabinet, led by Crown Prince Mohammed bin Salman, had approved a memorandum of understanding (MoU) with Pakistan’s Financial Monitoring Unit (FMU).

Due to its severe money laundering and terrorism funding issues in recent years, Pakistan was added to the Financial Action Task Force’s (FATF) grey list in June 2018.

The nation was taken off the gray list in October 2022 after enacting extensive measures to fortify its financial system.

The FMU is Pakistan’s financial intelligence unit, created under the Anti-Money Laundering Act of 2010 and tasked with collaborating with foreign partners and evaluating reports of suspicious transactions.

According to the SPA, “the cabinet approved a memorandum of understanding regarding cooperation in exchanging investigations related to money laundering, terrorist financing, and related crimes between the Financial Monitoring Unit in the Islamic Republic of Pakistan and the General Department of Financial Investigation at the Presidency of State Security in the Kingdom of Saudi Arabia.”

The MoU is an indication of Saudi Arabia and Pakistan’s growing strategic partnership. A significant Pakistani diaspora resides in the Kingdom, and numerous Pakistani businesses have established a presence there.

Saudi Arabia has been a key supporter of Pakistan’s economy, bolstering its reserves with substantial deposits in the State Bank of Pakistan and offering deferred oil payment facilities.