Current Account Deficit Falls by 63% in Q1 FY 2019-20

Pakistan’s current account deficit has decreased for the first quarter of this financial year (2019-20), going down 63.8%. This is all thanks to the reduction in the trade gap between imports and exports.

According to the State Bank of Pakistan, the current account deficit has narrowed to $1.548 billion in July to September 2019 as compared to $4.287 billion recorded last financial year, showing a massive difference of $2.739 billion.

The current account deficit showed volatility during the quarter. It reduced by 72 percent in the first month, then widened to 54 percent in the next month, and now settled at 63 percent by the end of the first quarter of FY2020. The deficit stood at $678 million in July, $610 million in August, and $259 million in September.

The trade deficit of goods and services reduced by 34 percent during the period, from $9.45 billion to $6.202 billion. On the other hand, inflows of remittances dropped by 1.4 percent in the first quarter to stand at $5.47 billion.

In addition to the reduction in the trade deficit, the disbursement of program-related inflows by the International Monetary Fund (IMF) and activation of the Saudi oil facility helped build SBP’s foreign exchange reserves.

The improvement in exports along with inflows of remittances and consistent control over imports may further stabilize the situation of balance-of-payments in the coming months.

The government must continue its strict economic policies for the stability of the balance of payments in the remaining months of the current financial year, which will enable it to meet at least one of its targets for the current financial year.

  • Why is dollar still up? They should bring it down as well… Price of each and everything is on fire right now…

    • Say thanks to PPP and PMLN for ballooning deficit. This govt is working very hard to fix economy if one knows the ABC of economics.

      • firstly I’m a supporter of PTI & I know more than economics then your generic forgettable name.

        Secondly, I didn’t make promises of magical changes. They did. What PPP and PMLN did, their elite leaders are in jail now and facing consequences as they should… Now for keep crying about what old Govt did, even 5 year old kid knows what they did. During dharna phase, they kept dancing and making magical change promises to people, even then a normal guy knew what old Govt did then, didn’t these tabdeeli guys know it then? Then why did they make stupid promises in Dharna’s? and now backtracking from it. I’ll tell you why, to win elections by scam promises & lies…

        Justice should be when Punjab PM rushed the request to approve his house in lahore AND increase salaries upto 100% without any performance from his side, he should’ve been suspended, but no… Justice should be the idiot snake like Fawad Chaudhary who for some stupid reason is the main guy for Science and technology, please ask from your heart and tell me, is he in any way qualified for such position? The name at the back of my head is Dr.Abdul Qadeer Khan, whom they’ve left to dry like a dog, no matter how he made the atom bomb, right now india can’t touch us because of it… And Credit goes to efforts of only Dr Abdul Qadeer khan and Army team to make that happen…

        After making promises of jobs, Fawad Donga Chaudhary recently bluntly said ppl should not look at Govt for jobs and they are also closing down 400 Govt Sectors as well. Now, this wouldn’t be a problem BUT they’ve made promises before in that idiotic time wasting Dharna and now completely denying them.

        I applaud Imran khan for atleast not backtracking from putting corruption out of this country, and his amazing speeches. But the main reason PTI will fail is because of the team of idiots he assembled. only a few of them are qualified, a few. Rest are sifaarshi chamcha’s just like old Govt’s had. Maybe to win elections he needed these idiots, but now they will play as his demise. and when PTI will fail (I hope they perform and do some amazing stuff and don’t fail), these garbage politicians will jump to other parties in a heartbeat & in history books only Mr.Khan will be ridiculed as a failed politicial figure even though it wouldn’t be his fault.

        I’m a supporter of PTI, again I’m saying it… But I’m not a blind supporter and don’t treat Imran Khan as a God like supporters of other parties do to their Sharif’s and Bhutto’s, like apparently you’re doing here…

        And as I’m illiterate economics ABC guy, please tell me why did they fully went to cross down exports and increase imports in an artificial manner? It’s not bad, You close down exports which are either locally produced or your country doesn’t need that product, but they did them on all of them, to artifically bring down deficit, which they did, but no support to local producers was provided, just tax notices and jail times. they’ve licking feet of all chinese labor coming from abroad. On the contrary they’re degrading salaries of our doctors, engineers and titan Pakistani entrepreneurs and when these guys go to other countries and make a name of their selves these tabdeeli idiots cry infront of cameras begging for them to come back…

        I hate what our Tajir class is doing here with shutter down’s and dharna’s. But what option do they have? Foreigners businesses are getting tax exemptions of upto 80 years right now in Pakistan and to local small time Tajir’s, they milking them upto 50% in direct and indirect taxes.

        Stop being a pujari, and start being a Pakistani, Mr know all XYZ…

        • From a fellow PTI voter, you hit the nail on the head. PTI cannot keep blaming previous governments anymore and show some actual results that they themselves promised. If they fail to deliver then they shouldn’t ask for votes in the next elections.

          • Thank you Pakistan. I’m glad to know at least mind of our country is currently on the right track. I hate grouping of patwari, jiyale and youthiye… I just want to be a Pakistani…

        • Blind allegiance to PPP, PMLN, PTI, MQM, and others, is how we got here. We need to start demanding results and dealing in cold hard facts. If the party you support cannot deliver actual results, then you need to stop supporting them, period. No ifs or buts, no “they need another chance.” We have given plenty of chances to Nawaz and PPP both. With our economy like it is now we can’t give any more chances.

          If IK cannot deliver actual results then he must step aside and let other, more capable minds, rule this country. He won’t deserve another chance either.

        • Our allegiance to Imran Khan should be unconditional. If you don’t like PTI then leave PTI and join PMLN.

          I am a Pushtoon and I have a firm believe that only a Pushtoon can change the destiny of Pakistan. We are born leaders unlike Sindhis and Punjabis who are born to serve because of their DNA.

          • No human being is above criticism. If you believe Imran Khan is doodh ka dhula farishta then you need to get your head checked. So far he has delivered nothing so “our” allegiance to Imran Khan is nothing. My allegiance is to Pakistan, and Pakistan only. If you don’t like being a Pakistani go to Afghanistan where there are plenty of pashtoons.

          • My unconditional allegiance is to Pakistan. Shove your unconditional allegiance to Imran Khan along with your racist comments about Sindhis and Punjabis where the sun doesn’t shine. Sindhis, Punjabis, Pashtoons, Saraikis, Muslims, non-Muslims, etc. are all Pakistanis. Stop creating a divide and be loyal to Pakistan first, then try to “change the destiny of Pakistan.” If only a pashtoon could change Pakistan’s destiny then pashtoons would first start by changing their own destiny.

          • Your pashtoon province is known for being so backward in all respects that 18th century customs seem modern compared to your province. But apparently “only a Pushtoon can change the destiny of Pakistan.”

            How about instead of Pakistan you change the destiny of your province first?

        • While parts of what said are true, most of it is incorrect. Most of what you’re saying is what we hear on TV and not based on facts.
          First of all, the dharna was in 2014, things have changed a lot since then and not only did the previous government hide the facts, they played with the numbers they published as well. This is not political mumbo jumbo or a blind follower supporting a party.
          Even those in the government didn’t know the country’s situation so you can’t blame PTI on this. And nobody knew it would be this bad back in 2014. So to be fair, it’s not PTI going back on its promises, its just that the economy was worse than what anyone could have imagined. However, you are right that PTI can’t keep on blaming the previous governments, it’s only a matter of time before they’ll be one of the previous governments.
          Everything about Punjab and its CM is correct but I wouldn’t discount Fawad Chaudhry like that. He’s quite smart in how he’s remained in the news and worked on the important stuff in both his ministries.
          I don’t know if you don’t remember or if you’re just gullible but Imran Khan or anyone else never promised 10 million government jobs. That’s just stupid. They aim to create jobs in the private sector and abroad. They’ve already made progress in foreign jobs; hundreds of thousands of them which is quite a feat. Just search for it.
          Do you want govt servants to keep on sucking our tax money and work on nothing? I honestly don’t and its a good step to consolidate the departments. That’ll save a lot of money.
          And as far as forex deficit is concerned, there was no other option since our annual foreign debt payments have crossed 65% of our annual exports. Imports need to be taxed higher until those loans are paid off. We will have to bear all this for at least 2 years and that’s when things will start to improve, if not for us then for the next generation.
          To put it simply, had PTI not been in power, this would have been the last 5-year tenure for any government before Pakistan went completely bankrupt.

      • working hard but in the wrong direction. IK may have the sincerity but the team is comprised of same old rascals and incompetent baboons.

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