All Major Economic Indicators Deteriorate In First Month Of Current FY.

ISLAMABAD -- Almost all major economic indicators have deteriorated in the first month (July) of the current fiscal year over the corresponding period of the previous year.

Apart from exports, all other economic indicators including imports, current account deficit, foreign investment, foreign exchange reserves and inflation rate have deteriorated in July 2022 as compare to same period of the previous year, according to the latest data of the Ministry of Finance. Inflation based on Consumer Price Indicator (CPI) for the month of July FY 2023 is recorded at 24.9 percent as compared to 8.4 percent during the same month last year. This was the second consecutive month in which annual inflation escalated above 20 percent.

Meanwhile, the current account posted a deficit of $1.2 billion for July FY 2023 as against a deficit of $851 million last year, mainly due to decline in workers' remittances owing to seasonality. However, the current account deficit shrank to $1.2 billion in July 2022 as against $2.2 billion in June 2022, largely reflecting a sharp decline in energy imports and continued moderation in other imports. Exports grew by 2.7 percent during July FY 2023 and reached $2.3 billion as compared to $2.2 billion last year. Imports also grew by 0.3 percent during July FY 2023 and reached $5.38 billion as against $5.37 billion last year. Resultantly, the trade deficit (July FY 2023) reached $3.09 billion as against $3.1 billion last year.

Foreign Direct Investment (FDI) has also declined by 43.3 percent and reached $58.9 million during July FY 2023 from $103.8 million last year. On monthly basis, FDI was recorded at $58.9 million in July 2022 as against an inflow of $271.1 million in June 2022. Foreign Private Portfolio Investment has registered a net inflow of $3.7 million during July FY...