Pakistan Economy: CAD - Giant leap forward into FY20, (AKD Daily Aug 21, 2019)
- Latest SBP data on external account show marked improvement in current account deficit (CAD), with the CAD in Jul’19 narrowing ~37%MoM/73%YoY to US$579mn. The sequential reduction in deficit was primarily driven by higher exports (up 24%MoM) and remittances (up 24%MoM).
- The trade imbalance continued to regress, narrowing 16%MoM/47%YoY to US$1,847mn in Jul’19. However, we remain skeptical about the sustainability of the exports-led sequential improvement in the trade deficit.
- On a YoY basis, the 47%YoY decline in trade deficit came on the back both significant reduction in imports (down 26%YoY) and higher exports (up 11%YoY).
- Overall, 7MCY19 CAD now stands 55%YoY lower at US$5,880mn, averaging a monthly deficit of US$490mn vs. US$1,083mn in 7MCY18. The contraction in trade deficit (both goods & services) and growth in workers’ remittances were the key drivers.
AKD Research
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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