Pakistan Economy: Current Account Deficit Clocks in at US$3.7bn, 5-Qtr Low
- State Bank of Pakistan (SBP) published 1QFY19 Current Account (CA) data, where CA deficit contracted by 2.6% YoY to US$3.7bn. The lower deficit is primarily due to 13.1% YoY increase in remittances.
- During the quarter, the country’s imports were recorded at US$13.8bn in 1QFY19, depicting an increase of 6% over 1QFY18. The growth in imports can be attributed to higher petroleum imports, where in the period Jul-Aug 2018, Pakistan imported US$3.2bn worth of petroleum products, up by a massive 52% YoY. We attribute this growth to rising international oil prices. Similarly in 1QFY19, exports rose by 3.6% YoY to US$5.9bn which was due to higher textile and food exports.
- Despite worsening trade deficit, where trade deficit rose by 7.6% YoY to US$7.9bn, CA deficit reduced by US$96mn YoY due to 26.5% YoY reduction in services deficit as well as 13.2% YoY increase in remittances. Remittances rose to US$5.4bn supported by strong inflows from USA, Malaysia, UK and UAE.
- On a sequential basis, CA deficit has fallen by a massive 42% where trade deficit and services deficit declined 10% and 46% respectively.
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).
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