Falling exports and slowing of remittances to exert pressure on current account deficit in FY17 and FY18

News Image

By MG News | April 06, 2017 at 05:25 PM GMT+05:00

0:00

Falling exports and remittances is cause for concern as it will double the current account deficit in the current fiscal year and intensify pressure on the external position, said Asian Development Bank report

The report of Asian Development released on Asian economies said that Pakistan’s falling exports for the third consecutive year have been due to falling commodity prices and weak economies. But also hinted that some domestic issues also clip exports such energy shortages, lesser investment in the industrial sector to expand and modernize the units and currency appreciation against other major currencies at global arena hampering export competitiveness.

The rupee most of the time pegged at 104.70 to 104.80 level making the currency less competitive against other currencies in real terms.
This combined with falling remittances which dropped by 1.9 percent to 10.9 billion dollars in the six months, declined by almost 10 years also put pressure on the current account deficit as the Gulf countries cut spending on falling crude oil prices. But since last two months the crude oil price has gone up which might help recover remittance figures but it will add to import bill of the country.

However, with delayed payment under Coalition Support Fund, falling exports and slower rate of remittances the current account deficit to widen to 2.1 percent of GDP in current fiscal year. While it may widens to 2.5 percent in next fiscal year

Related News

Name Price/Vol %Chg/NChg
KSE100 128,199.43
336.91M
2.05%
2572.11
ALLSHR 79,787.62
1,023.63M
1.53%
1202.91
KSE30 39,105.00
121.90M
2.49%
951.21
KMI30 186,915.61
131.16M
1.10%
2029.11
KMIALLSHR 54,201.88
553.60M
0.81%
438.07
BKTi 33,476.68
51.49M
4.87%
1555.00
OGTi 27,962.58
9.77M
0.68%
188.60
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 105,850.00 106,200.00
105,440.00
100.00
0.09%
BRENT CRUDE 67.12 67.29
67.06
0.01
0.01%
RICHARDS BAY COAL MONTHLY 97.50 97.50
97.50
0.70
0.72%
ROTTERDAM COAL MONTHLY 103.80 103.80
103.80
-3.45
-3.22%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 65.41 65.65
65.34
-0.04
-0.06%
SUGAR #11 WORLD 15.70 16.21
15.55
-0.50
-3.09%

Chart of the Day


Latest News
July 02, 2025 at 06:01 AM GMT+05:00

MG Morning Breeze: Updates to Skim before Market


July 01, 2025 at 10:04 PM GMT+05:00

Pakistan’s trade deficit improves by over 9% in June


July 01, 2025 at 05:24 PM GMT+05:00

Gold price in Pakistan rises Rs6,600 per tola



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg