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.”
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.
A 10-member Task Force has been formed by the government to digitize the Federal Board of Revenue (FBR) in partnership with the Special Investment Facilitation Council (SIFC).
Improving FBR’s systems and completely digitizing its operations are part of the Task Force’s mandate. Policy interventions, data automation, software installation, and collaboration with provincial revenue authorities are among the main goals.
Together with developing a track-and-trace system through integrated automation, the task force will also establish an Automated Supply Chain System for distributors and wholesalers.
Pakistan Revenue Automation Limited would become a stand-alone IT bureau for planning and data preparation.
In order to create a unified national tax strategy, the project seeks to maximize revenue collection, increase transparency, and simplify Pakistan’s tax system while encouraging cooperation between the federal and provincial tax authorities.
The benchmark 100 Index was up 777 points, finishing at 90,970 points, as the Pakistan Stock Exchange (PSX) maintained its striking upward trend for the sixth day in a row.
Strong market momentum and investor optimism were highlighted by the index’s 850-point spike earlier in the day, which briefly reached a record-breaking 91,050 points.
As trading activity hits previously unheard-of heights, the historic milestone represents increased investor optimism and represents a tremendous accomplishment for the PSX. Experts foresee continuous momentum if favorable conditions continue, attributing the ongoing advance to optimistic economic indicators and investor zeal.
The dates of the 2024 International Conference on Sustainable Agriculture are set for October 29 and 30 in Karachi.
Supported by the Green Pakistan Initiative, which has achieved great strides in the last year, the conference is organized by the Pakistan Media Development Foundation, Exhibitor TV, and Ripple Concept.
Focusing on enhancing agricultural productivity using contemporary technology, the conference supports the Special Investment Facilitation Council’s (SIFC) prioritizing of agriculture.
Experts will talk about sustainable techniques and organic farming, and there will be a plenary discussion on the Land Information and Management System.
In order to facilitate connections between professionals and stakeholders, the event will also feature exhibitions that promote contemporary methods and technologies.
Sindh and Balochistan’s agriculture departments will display their accomplishments in provincial pavilions. Participants will also include sponsors Saudi-Pak Investment Company, National Bank of Pakistan, and Bank of Punjab.