Observer Report
Karachi
The country’s trade deficit soared to $5.8 billion in the first quarter of the current fiscal year, according to data shared by the State Bank of Pakistan. The central bank said foreign direct investment declined by 24 per cent to $415.7 million from July to September as compared to last year’s corresponding period. The foreign investment was recorded at $189 million in September 2020. The power sector received foreign direct investment worth $113.3 million in the first quarter of the fiscal year 2020-21 while financial business $102.5 million. Earlier, on October 15, the State Bank of Pakistan had announced that the foreign reserves in the country witnessed a decline of United States Dollar 356 million in the week ending on October 09. The total liquid foreign reserves held by the country currently stood at US$ 19,015.5 million on 09 October. Giving a break-up of the foreign reserves, the central bank said that it currently holds the reserves of upto US$ 11,798.4 million as compared to the US$ 7,217.1 million forex reserves held by the commercial banks.
