Pakistan's economic outlook report shows reduction in remittances

ISLAMABAD: The Economic Outlook report showed a reduction in Pakistan’s remittances, imports, and current account deficit in the first six months of the current financial year (July-December 2023), ARY News reported.

The Finance Ministry‘s economic outlook report, however showed increase in FBR Revenues, Non-Tax Income, Growth in Investments and Foreign Exchange Reserves.

As per the report, remittances fell by 6.8 percent in the first half of the current fiscal year. “One billion US dollars decrease was witnessed in the six months of the fiscal year 2023-24 as compared to the first half of the last year,” The Economic Outlook report added.

Pakistan’s exports recorded a growth of 7.5 percent in the first six months of the current financial year, with 1.1 billion US dollars more revenue than the same period of previous fiscal year.

“The current account deficit fell by 71.1 percent and State bank of Paksitan’s reserves increased by more than five billion US dollars,” the report said.

In the first six months of current financial year, the FBR revenue recorded an increase of 30.3 percent while Non-tax revenue is increased by 116.5 percent.

The Fiscal deficit has increased by 43 percent to Rs2,408 billion from Rs1,683 billion. An increase of 103.7 percent was also recorded in the primary balance.

The finance ministry’s report said that inflation rate in the six months has been increased to 28.8 percent from 25 percent.

Earlier, Pakistan’s total liquid foreign reserves stood at $13,341.4 million as of January 19, 2024.

According to data issued by the central bank’s spokesperson, the SBP received an IMF tranche under SBA and facilitated the government’s external debt repayments during the week. After accounting for all flows, SBP’s reserves recorded a net increase of $243 million, reaching $8,270.5 million.