July 20, 2021
KARACHI: Current account (C/A) deficit narrowed to a 10-year low in FY2020-21, latest data showed on Monday, as higher exports and remittances offset hefty import payments.
The deficit reduced 58 percent to $1.9 billion in July-June FY2021 from $4.4 billion a year ago. The current account gap represented 0.6 percent of gross domestic product in FY2021, the smallest share since FY2012.
The deficit is in line with the State Bank of Pakistan’s (SBP) projection. It had forecast the current account gap to be in the range of 0.0-1.0 percent in FY2021. The current account deficit showed an improvement, despite a higher trade gap. This improvement is attributable to an upsurge in remittance flows and rise in exports.
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The State Bank of Pakistan (SBP) noted that in the agriculture sector, the secular decline in cotton production needs to be addressed. Dawn/File
KARACHI: The State Bank of Pakistan (SBP) on Friday expressed concerns that despite an encouraging economic recovery made during FY21, certain structural vulnerabilities could create hurdles for growth in FY22.
In its third quarterly report ‘The State of Pakistan’s Economy’, the SBP noted that in the agriculture sector, the secular decline in cotton production needs to be addressed.
“Timely availability of pest-resistant seed varieties and further support from agriculture extension departments, particularly to promote the adoption of climate-smart farming practices, could enable better outcomes,” the report said.
Pakistan to maintain growth trend
SBP report expects agriculture, industries and services sectors to perform well
Further impetus to economic growth is likely to come from planned investment in industrial sector. PHOTO: FILE
KARACHI:
Pakistan’s central bank is expecting that the economy will maintain its growth momentum through bumpy roads in the current fiscal year 2022 as a likely higher inflation reading, high import payments and elevating exports would remain among key challenges during the year.
All the three major sub-sectors of the economy; agriculture, industries and services, are expected to support growth momentum during the year in the wake of the government’s pro-growth policies, according to the central bank on Friday.
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