Yearender: Pakistans economy witnessed ups and downs in 2019
With the approval of IMF loan, Pakistans current account turned into a surplus in October.
ISLAMABAD (Web Desk) - The Pakistan Stock Exchange recorded great fluctuation during 2019. At one time during the beginning of the year Pakistan Stock Exchange was counted among the world s worst markets. However, with some sincere efforts it became one of the best markets in the world.
It is pertinent to mention here that on a yearly basis, the stock market index increased by 12 percent while the market recorded an increase of over 4,000 points.
In 2019, The International Monetary Fund (IMF) Executive Board approved a three-year, $6 billion loan package for Pakistan requested by Prime Minister Imran Khan s government to help resuscitate the country s ailing economy.
With the IMF board s approval, the fund on July 3 released a $1 billion tranche immediately to Pakistan, saying in a statement that the program aims to "support the authorities economic reform program" and to help "reduce economic vulnerabilities and generate sustainable and balanced growth."
The IMF loan was instrumental in giving stability to Pakistan’s economy as well as increasing the foreign exchange reserves to a large extent.
With the approval of IMF loan, Pakistan’s current account turned into a surplus in October for the first time in four years. After the IMF, the confidence of the World Bank and other institutions towards Pakistan also increased.
Meanwhile, Foreign Direct Investment increased to 850 million compared to 477.3 million last year showing an increase of 78.1 percent. Similarly, incorporation of companies increased 25.8 percent (7,177 from 5,707) during Jul-Nov FY2020.
FBR tax collection grew by 16.8 percent to Rs 1615.2 billion during July-November, FY2020 against Rs 1382.9 billion last year.
The total FBR tax collection domestic tax collection grew up 21.5 percent and Import taxes down 2.6 percent due to import compression.
On external side, Exports increased by 4.7 percent to $10.31 billion during July-November, FY2020 against $9.85 billion in the same period last year, while Imports decreased by 21.1 percent to $18.31 billion during July-November, FY2020 against $23.22 billion in the same period last year.
