Big news for Pakistan on the economic front

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Big news for Pakistan on the economic front

The State Bank of Pakistan (SBP) has announced that the current account deficit has decreased to $229 million from US$652 million last month.

The SBP Tweeted, “In January 2021, current account deficit reduced to $229mn from $652mn last month. For the first 7 months of FY21, the current account surplus is $912mn, a significant turnaround from the deficit of $2,544mn during the same period last year.”

“Compared to Jan20, exports grew steadily while remittances continued their record expansion. Imports of wheat and sugar to address domestic shortages, and palm oil, were significantly higher. Machinery imports continued to grow at double-digits, reflecting economic recovery,” the SBP added.

Earlier, the State Bank of Pakistan has reduced the markup rate on investment under SBP’s Temporary Economic Refinance Facility (TERF) to 5% (from 7%) and on Long Term Financing Facility.

SBP reduces markup rate on investment under SBP’s Temporary Economic Refinance Facility (TERF) to 5% (from 7%) and on Long Term Financing Facility for the non-textile sector to 5% (from 6%) to extend the benefit of the recent reductions in the policy rate.