Business

Pakistan’s current account deficit shrinks by 45% to $1.2bn

Published

2 years ago

Farwa

Decline in current account deficit largely reflects a sharp decline in energy imports.
“Narrower deficit is the result of wide-ranging measures taken in recent months,” SBP notes.
Primary reason behind yearly deficit is a decline in remittances.

KARACHI: The three-month import ban imposed by the coalition government bore fruits as Pakistan’s current account deficit — the gap between the country’s higher foreign expenditure and low income — shrank by a massive 45% month-on-month.

The current account deficit clocked in at $1.21 billion in July 2022 in comparison to a deficit of $2.2 billion (revised figure) in June, data released by the State Bank of Pakistan (SBP) showed.

“The current account deficit shrank to $1.2 billion in Jul from $2.2 billion in June, largely reflecting a sharp decline in energy imports and a continued moderation in other imports,” the central bank said in a brief note released on its Twitter handle.

“The narrower deficit is the result of wide-ranging measures taken in recent months to moderate growth and contain imports, including tight monetary policy, fiscal consolidation and some temporary administrative measures.”

1/2 The current account deficit shrank to $1.2bn in Jul from $2.2bn in Jun, largely reflecting a sharp decline in energy imports & a continued moderation in other imports. Visit #EasyData https://t.co/kiWKKJLduD pic.twitter.com/Kt3Ev5BjMt
— SBP (@StateBank_Pak) August 23, 2022

On a year-on-year basis, the primary reason behind the deficit was an 8% (yearly) decline in remittances along with a 0.4% (year-on-year) increase in total imports to $6.2 billion.

However, total exports increased by 4% year-on-year during July. Data showed that imports of goods stood at $5.39 billion in July, compared to $7.03 billion in June. At the same time, imports of services stood at $790 million in July compared to $1.32 billion in June.

Previously, widening the current account balance being an important indicator of Pakistan’s economy led to an outflow of US dollars, which had put additional pressure on the currency that has continued to struggle against the greenback.

SBP, PBS trade figures reveal discrepancies

However, the SBP and Pakistan Bureau of Statistics (PBS) trade figures revealed discrepancies. The data available showed that SBP imports exceed PBS imports in the first month of the fiscal year (July) — “a seldom event seen historically”.

According to the data released by the central bank, the total imports of the petroleum group clocked in at $2.4 billion while the figures of the bureau highlight the amount of $1.4 billion — reflecting a difference of $984 million.

Similarly, for the textile group, SBP data showed that the imports were around $379 million while PBS said that the imports clocked in at $309 million — which calculates to a difference of $70 million.

Business

The inaugural flight of Azerbaijan Airlines is between Baku and Karachi.

Published

10 hours ago

Farwa

The national airline of Azerbaijan launched direct flights from Baku to Karachi today. There will be two weekly flights on this route, on Thursdays and Sundays.

The first flight will land in Karachi, and Azerbaijan’s ambassador, Khazar Farhadov, will be there to greet it.

This evening also marks the departure of the inaugural flight from Karachi to Baku, in addition to the arrival of the flight from Baku.

Azerbaijan Airlines said last month that it would be growing its network and flight operations in Pakistan.

Aviation insiders have verified that Azerbaijan Airlines is preparing to launch service to Karachi in the coming month of April.

In addition to its current services in Islamabad and Lahore, the airline plans to launch its Karachi route on April 18, with the inaugural flight anticipated to depart on that date.

Azerbaijan Airlines has been given permission to operate flights on the Karachi route, according to sources within the Civil Aviation Authority (CAA).

Following a bilateral agreement between the two nations, Azerbaijan Airlines has been given permission to extend its operations in Pakistan.

Business

Fly Jinnah opens a new route internationally.

Published

10 hours ago

Farwa

Two weekly flights will be the starting frequency of the new route, which will connect the two cities.

According to a representative for Fly Jinnah, the company is pleased to announce the opening of a third international route from Islamabad to Muscat, the capital city of Oman, marking another significant milestone after the successful debut of flights from Islamabad and Lahore to Sharjah.

According to him, this development is in line with our goal of giving our clients more options for reasonably priced, value-driven local and international air travel.

The airline serves five main cities in Pakistan: Karachi, Lahore, Islamabad, Peshawar, and Quetta. Its fleet consists of five Airbus A320 aircraft, all of which are contemporary.

In addition to the current flight path to Sharjah, United Arab Emirates, this new route expands Fly Jinnah’s network of foreign destinations.

Business

Tajir Dost app: traders don’t seem interested in registering

Published

11 hours ago

Farwa

To tax retailers in Pakistan, the Tajir Dost app was released. The sources stated that the government hopes to tax 3.5 million merchants through the app.

Ajmal Baloch, the president of All-Pakistan Anjuman-e-Tajran, stated that he made reservations with FBR on the SRO within a week.

The Federal Board of Revenue (FBR), according to him, cannot be a “Tajir Dost” because of its unethical actions.

Baloch believed that since electricity bills allow traders to pay a predetermined advance income tax, further taxes are unnecessary.

The trader, according to him, is already paying thirteen different kinds of taxes on the commercial meter. “A trader already pays between Rs. 15,000 and Rs. 20,000 in taxes annually, but you are requesting Rs. 1,200 per month in taxes.”

Mr. Ajmal summoned representatives of the Federal Board of Revenue (FBR) to a meeting with the trade associations to talk about the indirect taxes that the merchants are paying.

Additionally, he claimed that FBR officers are charging the traders, the majority of whom are less educated, “monthly charges.”