Govt’s focus on reducing external imbalances bearing fruit: PM Khan

ISLAMABAD: Prime Minister Imran Khan on Wednesday praised his government’s efforts to improve Pakistan’s economy, saying their economic policies were beginning to bear fruit.

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The premier said this hours after State Bank of Pakistan announced that Pakistan’s current account deficit had fallen by a massive 73 per cent to $579 million in July, the first month of this fiscal year, as compared to $2.13 billion in the same period of last year.

PM Khan called it a great achievement for his administration.

The Pakistan Tehreek-e-Insaf (PTI) government’s consistent focus was on “reducing external imbalances by reducing imports and increasing exports and remittances”, and that this strategy was “bearing fruit,” the premier said in a tweet.

He added, “current account deficit reduced by more than $6 bn last yr & July this yr deficit is 73% or $1.5 bn lower than July 2018 – a great achievement.”

Read More: CURRENT ACCOUNT DEFICIT SHRINKS TO MASSIVE 73 PERCENT: SBP

The CAD shrank to $579 million in July (the first month of this fiscal year), as compared to $2.13 billion in the same period of last year. The whopping 72.81 percent reduction came on the back of a 10 percent jump in exports and a decline in imports and followed the government’s $6 billion bailout agreement with the International Monetary Fund earlier this year.

According to the SBP data, exports climbed 10 percent to $2.233 billion in July, from $2.012 billion in the same period last year. Imports, meanwhile, dropped to $4.08 billion from $5.497 billion.

As a result, the balance of trade in goods narrowed to $1.847 billion, compared to a deficit of $3.485 billion. The balance of trade in services, on the other hand, went down 8.5 percent to $473 million.

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