Pakistan Economy: 1HFY19 Trade Deficit Shrinks by US$1bn
- The July-Dec 2018 trade numbers were released earlier today where the country’s exports were recorded at US$11.1bn, up 1.7% over last year while the country’s imports for the period were recorded at US$28.1bn, down by around 3%. For the month of Dec 2018, exports were US$2bn, up 4% over last year, while imports were US$4.5bn, down 8%.
- Resultantly, the country's trade deficit for the period Jul-Dec 2018 recorded at US$16.9bn, down 5.6% or US$1bn over last year. For the month of Dec 2018, the trade deficit settled at US$2.4bn, down a significant 17% or US$500mn over last year.
- The improved trade numbers are primarily on the back of lower oil related imports. Furnace oil imports have reduced by 90% to only 300k tons during 1HFY19 compared to 3mn tons during the corresponding period last year. This is because of govt’s focus on alternate fuels for power generation (RLNG and coal). Similarly, Diesel imports are also down 36% to 1.4mn tons compared to 2.1mn tons last year.
- On a monthly basis, Dec 2018 trade deficit of US$2.4bn is down by 13% or US$356mn over Nov 2018. This could result in a less than US$1bn Current Account Deficit (CAD) for Dec 2018 (Nov’18 CAD was reported at US$1.3bn). Our FY19 CAD estimate is US$10-12bn compared to US$18bn during FY18.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.