FPCCI hails govt’s efforts to control Pakistan’s current account deficit

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Islamabad, Sept. 02 (Online): The Federation of Pakistan Chambers of Commerce and Industry has hailed the government’s efforts to control Pakistan’s current account deficit, leading to a surplus of $424 million in July 2020, the fourth monthly surplus since Oct 2019, warning the economic mangers that ‘surplus account balance’ must not be at the cost of negative economic growth.

FPCCI President Mian Anjum Nisar said that country’s current account balance has swung into a surplus of $424 million in July 2020 after posting a deficit of $100 million in June. This transformation from deficit into surplus is due to some recovery in exports and increase in remittances with support from several policies and administrative initiatives taken by the central bank and FPCCI appreciates these initiatives.

“But it is also the fact that the massive decline in imports has slowed down overall economic activities, ultimately hitting the GDP growth rate, he said adding the drop in current account deficit is a big achievement as a sign of macroeconomic stability but it is never beneficial for industrial growth-the real indicator of economic performance and development of a nation.

According to reports, contrary to the positive projection of GDP growth rate of 2.3 percent by the government, the World Bank had projected negative -1 percent GDP growth for Pakistan in 2020-21. The WB stated that policy adjustments in Pakistan is to address macroeconomic imbalances weighed on aggregate economic growth.

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