Balance of payment position worsens
Top Story
December 10, 2020
ISLAMABAD: Pakistan’s financial account has turned negative of $1.33 billion because of over $300 million outflow from the capital market, heavy repayments of outstanding loans and dried up project financing from multilateral and bilateral creditors.
The commercial banks withdrew around $850 million in the first four months, so the overall financial account has turned into negative.
Despite thumping with joy over the Current Account Deficit (CAD) turning from deficit to surplus during the first four months of the current fiscal year, the overall Balance of Payments (BoP) position has worsened as Islamabad is left with no other option but to revive the stalled IMF programme of $6 billion under the Extended Fund Facility (EFF). The IMF programme was put on halt in February 2020 in the aftermath of outbreak of COVID-19 pandemic. However, the IMF had extended $1.4 billion under the Rapid Financing Instrument (RFI) t