PTI government achieves a huge economic success in FY 2019-20
ISLAMABAD - PTI government achieves a huge economic success in FY 2019-20 with the drastic reduction in the current account deficit and the trade deficit, saving billions of dollars for Pakistan economy.
State Bank of Pakistan has revealed that current account deficit in FY 2019-20 has now been halved in the first two months of the new fiscal year as compared to the corresponding period last year.
The CAD – for the two month period – reduced by $1.56bn to $1.29 billion from $2.85bn during the same period last year.
This was in line with the downward trend witnessed throughout 2018-19 when the deficit stood lower by 31pc to $13.58bn, from $19.8bn in FY18 – recording a decrease of $6.3bn. The major reason of the shrink is the decline in the trade deficit.
In total, the trade deficit for the two months of the current fiscal year stood at $3.815bn as compared to $6.118bn during the corresponding period last fiscal year.
Mr Baqir mentioned that only the interest rate could curb rising inflation rate, and in future, the decision on interest rate would be taken in accordance with the inflation rate in the state.
He further stated that the savings rate in Pakistan was lowest as compared to the peers and the savings rate should be increased