KARACHI: Pakistan recorded a current account deficit of ارب 5.62 billion in December, the central bank said on Wednesday.
The country had a current account surplus of 13 513 million in November, compared to a small deficit of 7 7,287 million in December 2019.
Overall, during the first six months of the current fiscal year, the current fiscal year saw an increase in accounts and ڈالر 1.131 billion compared to a deficit of 2.0 2.032 billion in the same period last fiscal year.
Exports and remittances continued to increase in December 2020 compared to the previous year. The State Bank of Pakistan (SBP) said in a tweet that along with imports of some essential food items, growth-boosting capital goods, oil and industrial raw materials also increased. Imports rose 32 percent year-on-year to 5. 5.019 billion in December. However, exports rose 6.78 percent to 25 2.251 billion. Economic activity is picking up, driven by the fact that the Mass Manufacturing (LSM) Index rose 14.45% in November, while overall, the index rose 7.4% year-on-year in the current five months. What is the percentage increase? Financial year.
The LSM index is expected to be encouraging due to accelerated manufacturing activities, improved aggregate demand and new investments.
Recent figures from the Temporary Economic Refinance Facility (TERF) also show that investment and economic activity have recovered from the Corona virus-related decline.
Analysts say the monthly import bill will move forward, but overall it is unlikely to exceed 0.8 percent of GDP this fiscal year.
“Although monthly exports are likely to continue their upward march in FY 21EE, the recent rise in international oil prices may also see an increase in imports (Brent Crude will be lower than its April 2020 level). Up to $ 51 / barrel), according to a report released by BMA Capital.
In addition to prices, the volume of petroleum imports is already falling to the level of the code, placing an additional burden on the import bill. It said that during the five months of FY20, monthly petroleum imports were more than 40 per cent higher than their April 2020 low and 37 per cent higher year-on-year.
In addition, food imports are likely to remain high in the near term due to continued wheat imports for the next two months. More importantly, machinery imports will accelerate towards the end of FY 2021 as domestic activity improves and business machinery imports take advantage of the preferential TERF facility provided by the SBP. Bringing a car