ISLAMABAD - All major economic indicators have shown improvement in the first month of current fiscal year after showing decline in previous year mainly due to the outbreak of Covid-19.

Prime Minister Imran Khan has also expressed satisfaction over the economic situation of the country.

He said on Monday that Pakistan’s economy was on right track with significant achievements in exports sector and foreign remittances. He mentioned that current account balance posted deficit of $613 million in July 2019 and a deficit of $100 million in June 2020.

In July 2020, current account balance swung upwards to a surplus of $424 million, he added.

Tax collection of Federal Board of Revenue (FBR) has surpassed its target. According to the released information, against the assigned revenue target of Rs 243 billion, FBR has collected Rs 300 billion overshooting the target by a staggering Rs.57 billion, which is 125 per cent of the assigned revenue target.

The higher growth in FBR revenues is primarily on account of better supervision and improved administrative controls despite economic conditions caused by Covid-19 during which the country mostly remained in lockdown state.

Meanwhile, Pakistan’s exports had recorded growth of over 6 per cent in the month of July.

The country’s exports had remained at $2 billion in July 2020 as compared to $1.89 billion in same month of the previous year.

On the other hand, the country’s imports had gone down by 0.7 per cent and recorded at $3.69 billion in July this year.

The trade deficit had narrowed by 7.72 per cent to $1.69 billion in July due to reduction in imports and increase in exports.

Inflow of foreign remittances has recorded at historic level of $2.768 billion in July this year, showing growth of 36.5 per cent.

Pakistan had received foreign remittances worth $2.768 billion in July 20 as compared to $2.028 billion of remittances received in same month of previous year, showing an increase of 36.5 per cent.

This was highest ever remittances Pakistan has received in a single month.

Healthy growth in the home remittances and exports has largely contributed to swing the current account deficit into surplus in July this year.

The country’s current account deficit turned into surplus in the first month of this fiscal year supported by record-high remittances inflows.

Pakistan’s current account posted a surplus of $424 million in July 2020 compared to a deficit of $613 million in the same period of last fiscal year (July 2019). Surplus current account will also help to reduce the pressure on the country’s foreign exchange reserves.

Foreign Direct Investment (FDI) posted 61 per cent growth during the first month of this fiscal year (FY21). Pakistan fetched FDI amounted to $114.3 million in July 2020 compared to $71.1 million in July 2019, showing an increase of 60.8 per cent or $43.2 million.

However, Inflation edged up to 9.3 per cent in July, from 8.6 per cent in June, on the back of a hefty jump in prices of petroleum and food products.

In July 2019, the price levels rose by 8.4 per cent.