World Bank anticipates low current account deficit of 0.7% of GDP for FY24

News Image

By MG News | April 04, 2024 at 12:34 PM GMT+05:00

0:00

April 04, 2024 (MLN): The current account deficit is expected to remain low at 0.7% of Pakistan's GDP in FY24 and to further narrow to 0.6% of GDP in FY25 and FY26, according to the World Bank.

This is due to muted expected growth in imports, reflecting weak domestic demand and continued import management measures aimed at preserving the scarce foreign reserves.

The World Bank further highlights that Pakistan’s external financing needs will remain significant throughout the projection period, due to IMF repayments and maturing Eurobonds.

Despite a low CAD, the reserve position is therefore projected to further weaken, reflecting limited external financing.

The current account deficit (CAD) narrowed to $0.8 billion in July–December 2023 (1HFY24) from $3.6bn in 1HFY23 largely due to a substantially smaller trade deficit on account of reduced domestic demand, import management measures, and lower global commodity prices.

Meanwhile, official remittances decreased by 6.8% YoY in 1HFY24 due to exchange rate rigidities earlier in the year.

Reflecting fresh multilateral and bilateral inflows, the financial account ran a substantial surplus leading to a balance of payments (BOP) surplus of $3bn in 1HFY24, compared with a deficit of $4.2bn in 1HFY23.

Consequently, international reserves increased to $9.4bn at the end of December 2023, equivalent to 1.7 months of imports.

With the BOP surplus and regulatory reforms in the foreign exchange market, the rupee appreciated modestly (1.2%) against the US dollar over 1HFY24.

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 125,627.31
258.99M
1.00%
1248.25
ALLSHR 78,584.71
1,142.41M
1.16%
904.89
KSE30 38,153.79
69.25M
0.63%
238.06
KMI30 184,886.50
91.38M
0.01%
13.72
KMIALLSHR 53,763.81
554.57M
0.54%
290.61
BKTi 31,921.68
33.15M
1.78%
557.94
OGTi 27,773.98
9.65M
-0.40%
-112.21
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 107,545.00 108,105.00
107,505.00
-690.00
-0.64%
BRENT CRUDE 66.43 66.63
66.34
-0.31
-0.46%
RICHARDS BAY COAL MONTHLY 97.00 97.00
97.00
1.05
1.09%
ROTTERDAM COAL MONTHLY 107.65 107.65
105.85
1.25
1.17%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 64.78 65.02
64.67
-0.33
-0.51%
SUGAR #11 WORLD 16.19 16.74
16.14
-0.52
-3.11%

Chart of the Day


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

MG Morning Breeze: Updates to Skim before Market


June 30, 2025 at 11:55 PM GMT+05:00

TRG: Dominos Tumbling for the Management



Top 5 things to watch in this week

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