Curretn Account Analysis of Previous Three Governments of Pakistan. From 2008-2022. Net Foreign Direct Investment, Net Trade in Goods and Services, Net current Transfer. Current Account Balance. Data from world Bank.

1. Current Account
Current Account Analysis of Previous three Governments of Pakistan
Presenters:
Musharraf Israr
Fahad Farooq
Muntazir Raza
Waqar Ahmed
Supervisor: Mr. Muhammad Adnan

2. GDP Comparison:

3. Current account measures the nation's earnings and
spending’s abroad and it consists of the balance of trade,
net primary income or factor income (earnings on foreign
investments minus payments made to foreign investors)
and net unilateral transfers, which have taken place over a
given period of time.

4. Current account Calculations
CA=(X-M) + NY + NCT
Where CA is the current account, X and M are respectively the
export and import of goods and services, NY the net income
from abroad, and NCT the net current transfers.

5. Pakistan’s Current Account in Previous 3
Governments:
PPP’s Government 2008-2013:
• Net Foreign Direct Investment (US$)
• Net trade in goods and services (US$)
• Net Current Transfer (US$)

6. Net Foreign Direct Investment (US$):

7. Net trade in goods and services (US$)

8. Net current Transfers (US$)

9. PMLN’s Government 2013-2018:
• Net Foreign Direct Investment (US$)
• Net trade in goods and services (US$)
• Net Current Transfer (US$)

10. Net Foreign Direct Investment (US$)
2014 2015 2016 2017 2018
Pakistan -1,765,000,000.0 -1,648,000,000.0 -2,524,000,000.0 -2,444,000,000.0 -1,758,000,000.0

11. Net trade in goods and services (US$)
2014 2015 2016
2017 2018
Pakistan -20,547,000,000.0 -20,018,000,000.0 -25,036,898,000.0 -35,006,621,000.0 -37,647,987,000

12. Net Current Transfer (US$)
2014 2015 2016 2017 2018
Pakistan 17,207,000,000.0 19,247,000,000.0 19,734,000,000.0 19,710,000,000.0 21,038,000,000.0

13. PTI’s Government 2018-2022
• Net Foreign Direct Investment (US$)
• Net trade in goods and services (US$)
• Net Current Transfer (US$)

14. Net Foreign Direct Investment (US$)
2019 2020 2021 2022
Pakistan -2,319,000,000.0 -2,102,000,000.0 -1,905,000,000.0 -8,000,000.0

15. Net trade in goods and services (US$)
2018 2019 2020 2021 2022
Pakistan -37,647,987,000.0 -27,305,928,000.0 -24,764,874,000.0 -40,902,106,000.0 -37,416,108,000.0

16. Net Current Transfer (US$)

17. Current Account Balance (US$):

18. Conclusion:
Based on the analysis of Pakistan's current account
performance under different governments from 2008 to 2022,
it can be concluded that the PTI government (2018-2022)
performed relatively better than the PPP and PML-N
governments.

19. Cont.
Improvement in Current Account Deficit:
The PTI government managed to reduce the current account deficit from -5.8% of
GDP in 2018 to -0.6% of GDP in 2021. This indicates a significant improvement in
the country's external financial position during the PTI's tenure.
Diversification of Exports:
The PTI government focused on increasing exports and diversifying export products
and destinations. This approach helped enhance the country's trade balance and
reduce reliance on specific sectors, contributing positively to the current account.
Remittances and Banking Channels:
The PTI government attracted remittances through formal banking channels, leading
to increased transparency and stability in the current account. This shift helped in
mitigating the impact of external economic shocks.

20. Cont.
Improvement in Current Account Deficit:
Structural Reforms: The PTI government implemented structural reforms, including
measures supported by the IMF program. These reforms aimed at addressing
economic imbalances, improving fiscal discipline, and enhancing overall economic
resilience.
Challenges Faced:
While the PTI government faced challenges such as the COVID-19 pandemic,
political opposition, and external pressures, it demonstrated adaptability and
responsiveness to economic issues. The government's efforts to navigate these
challenges contributed to the overall positive performance