Lahore: A Canadian research organisation called BCA Research has revealed that Pakistan’s reduced trade deficit would improve the country’s balance of payment (BOP) position, a news source reported on August 3.
In its study titled ‘BCA Overweight View in Pakistan Equities’, the organisation said that the reduced trade deficit and remittance inflows would help improve the country’s BOP position. The study indicated that the deficit would contract further as Pakistan’s exports would improve more than its imports.
The study showed that Pakistan’s total exports fell 6.8% year-on-year in June. It added that this was a considerable improvement as exports had fell significantly by 54% and 33% in April and May, respectively. The report maintained that the number of daily new COVID-19 cases and deaths were falling so the country was to likely remain open for business activity – lowering the chances of a disruption in domestic supply.
The report revealed that the as the DM growth would recover, so would the demand for Pakistan products. It added that lower oil prices would also help cut Pakistan’s year-on-year import bill over the next six months.
