PM praises economic team for turnaround

On Saturday, Prime Minister Imran Khan praised his economic team for turning around the national economy within a period of one year, especially referring to decline in the current account deficit and an increase in investments. The premier in a series of tweets shared some data-graphs showing performance of foreign direct investment, exports and remittances besides a sharp decline in the current account deficit. The prime minister said that the current account deficit was on a 41-month low in September 2019; in July-September, the first quarter of the current fiscal year, the current account deficit declined by a huge 64pc to $1.5bn from $4.3bn of first quarter in the last year. It was partially due to increase in exports and 21pc decline in imports. During the last year of PML-N government 2017-18, Pakistan had witnessed the biggest current account deficit at $18.25 billion.
The fiscal deficit also declined by 36 per cent in the first quarter of the ongoing fiscal year as revenue increased and expenditure kept under control. The Federal Board of Revenue (FBR) has collected Rs. 960 billion in the first quarter of current fiscal year 2019/2020, which is about 90 percent of the target for the quarter, Syed Shabbar Zaidi, Chairman, FBR said on the completion of first quarter. In a message on social media, he said that tax collection up to 90 percent of highly aggressive target for quarter ended September 30, 2019 has been achieved. The chairman added that the imports had been contracted by $3 billion during the period, which is no mean achievement. It is important to recount the achievements and measures by the PTI government to put economy on an even keel and to increase employment opportunities.
Pakistan Post launching of National Internship Program with 35000 vacancies. Textile industry showed 26% growth in quantitative terms according to APTMA. Remittances in Sept 2019 increased by 17.5% compared to September 2018. New tourism zones are being formed in KP; 20 new tourist spots have been identified in KP. Industrial Sectors profit year ending 30th June 2019: Banking Rs. 147 bn, Cement Rs. 31bn, Auto sector Rs. 121bn; Oil & Gas Rs. 221bn; Fertilizer Rs. 68bn; and Power Rs. 27bn. PIA completes overhauling of Boeing 777 indigenously; government awards license to foreign firms for renewable energy projects. FBR struck a deal with UAE government for exchanging details of Pakistani asset owners; issue of Aqama abuse is also being handled. Global investors bought Pakistan’s local currency bonds for $342 million i.e. Portfolio Investment. Total export quantity increased by 12%, in 2019 YoY basis; textile exports cross $13 bn due to 26% increase in quantity.
Imports fell by 20.5% and exports increased by 2.7% FQ FY, trade deficit shrinks by 35% to $5.72 billion and telecom sector revenue will be Rs. 338 bn. SBP Profit is likely to be at Rs. 200 bn whereas selling of LNG Plants to earn Rs. 300 Billion. Last week, China said it believed that Prime Minister Imran Khan’s visit to Beijing would inject a new impetus into bilateral partnership between the two all-weather friends. Indeed, Imran Khan’s visit to China was a resounding success, as Pakistan and China agreed that the implementation of the second phase of China-Pakistan Free Trade Agreement (FTA) would lead to more trade, economic and investment opportunities between the two countries. Chinese investment in specialized Economic Zones and collaboration in Small and Medium Enterprises sector would further expand Pakistan’s industrial base and diversify its export base.