ISLAMABAD: Total foreign investments in Pakistan, including foreign directand portfolio, declined 77.1pc during the first eight months (July-Feb) ofthe current fiscal year (FY21).
According to monthly data shared by the Ministry of Finance, total foreigninvestments into the country were recorded at $911 million during 8MFY21,as compared to $3.9 billion in the same period of last year.
MoF’s Monthly Economic Update & Outlook further revealed that the country’sfiscal deficit stood at 2.9pc of the GDP (Rs1,309 billion) during July-FebFY21 compared to 3.2pc (Rs1,430 billion) in the same period of FY20.
“The primary balance continues to remain in surplus, increasing 0.9pc ofthe GDP to Rs416 billion during 8MFY21, as opposed to Rs53 billion (0.3pcof GDP) in the same period of last year,” it added.Article continues after this advertisement
During the period under review, remittances grew significantly by 24.1pc,from $15.1 billion to $18.7 billion. However, exports in term of valuedeclined 2.3pc to $16.1 billion from $16.4 billion, whereas importsincreased 8.6pc to $32.1 billion from $29.6 billion.
Meanwhile, the FBR reported a 6pc growth in revenue during the period underreview, from 2,750 billion last year to Rs2,915 billion. Non-taxconsolidated revenue, however, decreased 1.7pc to Rs941 billion as opposedto Rs957 billion in 8MFY20.
Public Sector Development Programme (PSDP) authorization clocked in atRs479.2 billion from 1st July till 5th March 2020-21, compared to Rs466billion during the same period of last year.
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Agriculture credit (provisional) stood at Rs806 billion, up 2pc fromRs783.8 billion a year ago, while credit to the private sector (flows) wasrecorded at Rs365.9 billion compared to Rs244.9 billion last year.
As per the MoF, expectations of economic recovery are strengthening on thebasis of improvement in business confidence evident from industrial growth.The State Bank of Pakistan in its recent monetary policy statement is nowprojecting higher growth in the fiscal year 2021 compared to its previousanticipation.
The third wave of Covid-19 spell in Pakistan has raised the daily cases toaround 3,500 with a 2.2pc death rate. In response, the government hasstarted a ‘smart lockdown’ strategy to ensure the public to observe SOPsstrictly will be helpful in the continuation of economic recovery alongwith decelerating inflationary pressure and preserving the external balance.
“The fiscal performance from July till February shows that the fiscalconsolidation policy helped preserve fiscal discipline, increase revenues,and control expenditure,” the ministry stated.
