External Economic Indicators of Pakistan Best in a Decade
The current account deficit in the preceding financial year 2020-2021 dropped to only 0.6% of the Gross Domestic Product
State Bank of Pakistan (SBP) shared that the country’s external economic indicators are at its strongest in a decade.
The central bank in a Twitter thread shared the data of external economic indicators.
1/3 Pakistan’s external position is at its strongest in many years. In line with SBP projections, CAD in FY21 fell to only 0.6% of GDP. This is lowest in 10 years, with exp. and remittances at all-time highs. FX reserves rose by $5.2bn in FY21 to over $17bn, a 4½ year high. pic.twitter.com/UDUnfdOzsC
— SBP (@StateBank_Pak) July 19, 2021
It said that the Current Account Deficit (CAD) in the preceding financial year 2020-2021 dropped to only 0.6% of the Gross Domestic Product (GDP), the lowest in 10 years. The CAD rose to $1.6 billion in June.
SBP credited the exports and all-time high remittances for stagnancy in the deficit.
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Pakistan’s exports went up by $368 million while remittances rose by $197 million in June compared to May, the data said.
However, the imports jacked up by Rs $1.4 billion between April and June which according to central bank was seasonal because of year-end payments.
SBP said the import bill also swelled due to the import of oil at high international prices and covid-19 vaccines.
3/3 Some of the rise in imp was seasonal, associated with bunching of year-end payments. Imp bill was also larger than May due to higher oil imp and Covid vaccines. Encouragingly, imp of capital goods like machinery continued to rise, reflecting improvement in investment outlook.
— SBP (@StateBank_Pak) July 19, 2021
The central bank noted that the foreign exchange reserves rose by $5.2 billion in the preceding financial year and recorded above $17 billion, the highest in the last 54 months.
