The federal government has acknowledged that Pakistan's recent economic recovery is in danger of declining due to a second wave of coronavirus in the country as well as in major trading partners, but inflationary pressures have eased.
According to the newspaper report, the monthly economic update released by the Ministry of Finance and the November scenario said that "if you look at the ongoing effects of the coronavirus, the threat of decline has become very prominent."
The economic recovery began at the beginning of the new fiscal year and continued until October, but the impact of the economic scenario depends on the severity of the sanctions imposed on certain sectors of the economy.
The ministry acknowledged that the fiscal deficit for November 2020 had increased by about 70 percent over the same period last year, although there had been no increase in development expenditure.
The recent rise in the number of Corona cases is forcing the government to adopt a prudent policy, especially in the services sector, and, like the rest of the world, has a mixed message for Pakistan's economic landscape.
The ministry said that if the people follow the SOPs, the impact could be lessened and the economy could return to the path of long-term growth.
The ministry said inflationary pressures had eased and that flexibility was likely to continue in the coming months.
From July to October, the main cause of inflation in Pakistan was the prices of international and local goods, especially groceries and oil products, while exchange rates and fiscal policies also played a role.
The November report shows that the recent rise in Covid 19 infections and pressure on hospitals has hurt Pakistan's most important markets.
According to data released by the ministry, remittances increased by 26.5 percent during the first four months of the current financial year, but exports declined by 10.3 percent, imports by 4 percent, and foreign investment by 62 percent over the same period last year. ۔
According to the report, the trade deficit increased by 4% to 6.7 billion, with a current account deficit of 1.4 billion in the first four months of last year.
In addition, the country's total foreign exchange reserves rose 24 percent to 20.55 billion in November.
