CAD likely to hit $20 bn mark in FY22.

ISLAMABAD -- The country's current account deficit is expected to cross $20 billion mark by end of current fiscal year as against the claims of only $1 billion made by the PTI leaders.

According to sources from the cabinet in waiting, the actual figure of the CAD in 2018 was $19 billion.

With respect to the foreign exchange reserves, the sources also termed the claims of leaving $22 billion forex reserves by the previous regime as misleading saying that actual numbers of the reserves with the central bank were $11 billion. While in 2018, the State Bank of Pakistan (SBP) had foreign exchange reserves of $10 billion.

Similarly, the sources also rejected the PTI's claims of collecting taxes worth of Rs 6.1 trillion in 2022, saying that the tax to GDP ratio has decreased significantly from 11.1% in 2018 to 9.1% in 2022.

In nominal, non inflation-adjusted rupee terms the numbers are: Rs 3842 billion in 2018 and Rs 5800 billion in 2022.

In all 3 years PTI's tax to GDP was less than what PMLN was able to achieve. During PTI's first year (FY2019), Pakistan's tax revenue shrank in minimal terms for the first time in the country's history.

Foreign remittances, the sources added, stood at $20 billion in 2018 while by end of current fiscal year (FY22) the remittances are expected to be around $29 billion.

"Again the remittance were stagnant during PTI's first year and increase only when travel outside Pakistan as restricted and 2.2 million Pakistanis who go for Umrah annually didn't go and the money came to Pakistan as remittance," the sources added.

The country's exports during 2018 stood at $24.8 billion which are likely to be increased to $29.5 billion by end of current fiscal year. The sources also rejected the PTI's claims of achieving the IT exports target of $5...