The State Bank of Pakistan (SBP) sees a rise in economic activity & the CA Deficit. This was revealed in their 3rd quarterly review, that there was growing evidence the economic recovery gathered further momentum during the 3rd quarter of FY21. The growth in the industrial sector was mainly due to LSM, in the services sector, wholesale and retail trade, in agriculture, record output of four out of five important crops (namely wheat, rice, maize and sugarcane; cotton however declined).
The SBP further said that while there is growth, the Current Account Deficit is expected to rise, mainly due to a further widening in the trade deficit, and rise in import payments. The increase in imports reflects higher oil prices, which are now projected to add to the pressures coming from consistently growing import volumes of energy commodities.
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