ANL 30.41 Decreased By ▼ -0.27 (-0.88%)
ASC 14.11 Decreased By ▼ -0.83 (-5.56%)
ASL 23.35 Decreased By ▼ -0.55 (-2.3%)
AVN 92.00 No Change ▼ 0.00 (0%)
BOP 9.06 Decreased By ▼ -0.08 (-0.88%)
BYCO 9.80 Decreased By ▼ -0.45 (-4.39%)
DGKC 132.20 Decreased By ▼ -3.40 (-2.51%)
EPCL 50.98 Increased By ▲ 0.98 (1.96%)
FCCL 24.10 Decreased By ▼ -0.52 (-2.11%)
FFBL 23.80 Decreased By ▼ -0.45 (-1.86%)
FFL 15.03 Decreased By ▼ -0.57 (-3.65%)
HASCOL 10.66 Decreased By ▼ -0.08 (-0.74%)
HUBC 83.35 Decreased By ▼ -1.85 (-2.17%)
HUMNL 6.80 Decreased By ▼ -0.55 (-7.48%)
JSCL 24.00 Decreased By ▼ -0.85 (-3.42%)
KAPCO 36.70 Decreased By ▼ -1.15 (-3.04%)
KEL 4.07 Decreased By ▼ -0.08 (-1.93%)
LOTCHEM 14.18 Decreased By ▼ -0.60 (-4.06%)
MLCF 45.80 Decreased By ▼ -0.80 (-1.72%)
PAEL 36.50 Decreased By ▼ -1.75 (-4.58%)
PIBTL 11.53 Decreased By ▼ -0.27 (-2.29%)
POWER 10.24 Decreased By ▼ -0.26 (-2.48%)
PPL 89.50 Decreased By ▼ -1.05 (-1.16%)
PRL 24.41 Decreased By ▼ -1.69 (-6.48%)
PTC 8.78 Decreased By ▼ -0.17 (-1.9%)
SILK 1.41 Increased By ▲ 0.01 (0.71%)
SNGP 37.50 Decreased By ▼ -0.60 (-1.57%)
TRG 136.20 Decreased By ▼ -4.90 (-3.47%)
UNITY 29.10 Decreased By ▼ -2.40 (-7.62%)
WTL 1.50 Decreased By ▼ -0.07 (-4.46%)
BR100 4,837 Decreased By ▼ -99.14 (-2.01%)
BR30 24,813 Decreased By ▼ -590.26 (-2.32%)
KSE100 45,112 Decreased By ▼ -753.24 (-1.64%)
KSE30 18,838 Decreased By ▼ -335.53 (-1.75%)

KARACHI: The country’s current account sharply declined by 65 percent in January 2021 compared to December 2020. For the second consecutive month, Pakistan’s external account posted a deficit, however, current account deficit in January 2021 was lower than December 2020.

Pakistan's current account registered a deficit of $229 million in January 2021versus $652 million in December 2020, fell 65 percent MoM. The current account deficit in January 2021 is also some 55 percent lower than January 2020, in which deficit was $512 million.

Overall, current account for the first seven months of FY21 was remained in surplus. The country’s current account was in surplus amounted to $912 million during July to Jan of this fiscal year (FY21) as against deficit of $2.54 billion during the same period of last fiscal year (FY20).

According to SBP, compared to December 2020, exports grew steadily while remittances continued their record expansion in January 2021. In addition, imports of wheat and sugar to address domestic shortages, and palm oil, were significantly higher. While, machinery imports continued to grow at double-digits, reflecting economic recovery.

The SBP reported that collective deficit of goods trade, services and income stood at $17.917 billion in first seven months of FY21 as against $17.103 billion in the corresponding period of FY19.

With higher inflows of home remittances, the outlook for the external sector has already improved. As per SBP projections, current account deficit is expected to be in the range of 0.5-1.5 percent of GDP compared to previous estimates of 1.0 to 2.0 percent of GDP. The revision is mainly due to an upward adjustment in workers’ remittances, which are now expected to be in $ 24-25 billion during this fiscal year.

It may be mentioned here that Furthermore, the surplus in the surplus current account has not only eased the pressure on external debt management, but also provided an opportunity to build the country’s depleting foreign exchange reserves.

Copyright Business Recorder, 2021