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The Finance Ministry anticipates a current account surplus in the near future.

The Finance Ministry anticipates a current account surplus in the near future.

The Finance Ministry anticipates a current account surplus in the near future.

The Finance Ministry anticipates a current account surplus in the near future.

The current account balance is anticipated to reach equilibrium or possibly a small surplus in the upcoming months, according to the Ministry of Finance.

The trade balance will improve in the upcoming months as a result of decreased imports brought on by a slowdown in domestic economic activity and overall demand. However, the resurrection of infrastructure in the nation’s flood-affected areas may help the exporting situation, according to the Ministry of Finance’s Monthly Economic Update & Outlook for October.

Remittances are also anticipated to return to a level of roughly $ 2.7 billion, it was stated. As a result, in the base case, it is anticipated that the current account balance will reach equilibrium or even slightly exceed zero.

According to the study, efforts to consolidate the government’s finances have been significantly complicated by the extensive relief and restoration needs coming from the devastating floods.

There will be tremendous pressure on overall spending since the government needs to set aside more money for the rescue and rehabilitation of flood victims and the reconstruction of infrastructure, according to the research.

The Federal Board of Revenue’s (FBR) tax collection in the first quarter of the current fiscal year has been extraordinary thanks to a successful revenue mobilisation plan, according to the report, despite import compression, the zero rates of Sales Tax on POL products, and the flood scenario.

However, the research added that a predicted slowdown in economic activity and growth as a result of the devastation caused by the floods could have an impact on efforts to mobilise domestic resources.

According to the report, the rising inflation brought on by supply shocks within the country is anticipated to be countered by the falling prices of commodities on the global market.

“However, it may be anticipated that YoY CPI inflation will continue its downward trend seen in September in the month of October.

According to the research, the overall economic forecast paints a positive picture of the economy’s performance in the months to come. The CPI inflation rate is falling, the value of the rupee has stabilised, and the current account balance is improving.

According to the research, “These developments suggest that economic activity will stay favourable and consistent in the months to come.”

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