Weekly Economic Roundup

July 25, 2021 (MLN): The weekly economic roundup summarizes the country's key economic and financial data for the week from various sectors to keep an eye on next week's trends.

  • The Monetary Policy Committee of SBP will meet on Tuesday, July 27, 2021 at SBP Karachi to decide about Monetary Policy.
  • Pakistan's Forex Reserves increased by USD 815.90 Million or 3.36% and the total liquid foreign reserves held by the country stood at USD 25,128.00 Million on Jul 16, 2021.
  • Exports from Pakistan during June 2021 amounted to Rs. 426,126 million (provisional) as against Rs. 256,105 million (provisional) in May 2021 and Rs. 263,985 million during June 2020 showing an increase of 66.39% over May 2021 and 61.42% over June 2020.
  • Imports into Pakistan during June, 2021 amounted to Rs. 995,843 million (provisional) as against Rs. 811,947 million (provisional) in May, 2021 and Rs. 611,449 million during June 2020 showing an increase of 22.65% over May, 2021 and of 62.87% over June 2020.
  • The trade value of food exports from the country in June’21 stood at around $433.6million, depicting a notable increase of 41.83% YoY from $305.66mn in June’20.
  • Pakistan’s imports stood at $6.37 billion in the month of June’21 with major contributions were associated with petroleum products, mobile phones, electrical machinery, and plastic materials.
  • The import bill of Petroleum group expanded 3x YoY while on MoM basis, the same group witnessed a jump of 30% to stand at $1.22bn.
  • The total export of textile products witnessed a record high of $1.7 billion in the month of June 2021 as it surged by 57.8% MoM and 73.1% YoY when compared with the figures of the previous month and year respectively.
  • The Banking sector spread for June 2021 slightly grown by 4 basis points (bps) over the month which brings its latest value to 4.48% as compared to the prior month's spread of 4.44%. On the other hand, the spread has compressed by 129 bps as compared to the same period last year.
  • The country’s total exports have posted a growth of 13.73 percent to around $25.62billion during FY21 as compared $22.53billion in FY20, according to the data issued by the State Bank of Pakistan (SBP) on export receipts by commodities.
  • USA remained as the top export destination for Pakistan with $5billion worth of shipments in FY21, against the exports of $3.9bn in FY20, showing an increase of 28% YoY.
  • Among Pakistan’s top trading partners, China remained the top source of imports for Pakistan during FY21, followed by United Arab Emirates (UAE), Singapore, the USA, and Saudi Arabia.
  • Pakistan received $14.28 billion total external inflows during July-June FY21 from bilateral and multilateral development partners, foreign commercial borrowing, bonds, and time deposits to restructure its economy and finance its development projects.
  • Pak Rupee's Real Effective Exchange Rate Index (REER) decreased by 2.32 percent in June 2021 to a provisional value of 99.85 from the revised value of 102.22 in May 2021.
  • Pakistan’s current account balance posted a deficit of $1.85bn in FY21, compared to the deficit of $4.49bn in FY20, marking a decline of 58% YoY.
  • Pakistan’s trade deficit in services stood at $1.88 billion during the fiscal year 2020-21, signifying a decline of 43.5% as compared to a deficit of $3.32bn recorded in the same period last fiscal year.
  • Signifying the strong bilateral trading and investment relations that have been growing over the years, China has retained the top position as a foreign direct investor in Pakistan during FY21, with a net direct investment of $757.9 million, followed by Hongkong and the United States that invested a net $157.2 million and $155.5 million, respectively.
  • Despite weak global trends and lack of triggers, Pakistan’s Power Sector has received the highest net FDI worth $906.1 million, up by 18% YoY during FY21, followed by the Oil & Gas Exploration sector and Financial Businesses with net FDI of $242.8mn and $235.5mn, respectively.

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Posted on: 2021-07-25T13:09:00+05:00