Pakistan’s current account balance remained in surplus for the fourth consecutive month in October, rising to $382 million or 1.6 per cent of the gross domestic product (GDP), data released by the State Bank of Pakistan (SBP) showed on Thursday.
“In October, the current account surplus rose further to $382 million from $59 million in September (+547pc MoM), on the back of a sustained increase in remittances and smaller trade deficit,” the SBP said. “Since the start of this fiscal year in July, the cumulative current account surplus has reached $1.2 billion, reversing the $1.4 billion deficit recorded in the same period last year.”
So far, in the four-month period from July to October, total inflows of remittances have risen to $9.43 billion, up 26.5pc compared to $7.45 billion in the same period last year.
On the other hand, during the same July-October period, the country’s trade balance in goods has risen four per cent to $6.74 billion from $6.48 billion during the same period last year; the services trade balance narrowed 38pc to $785 million compared to $1.27 billion.
Reacting to this development, Minister for Industries and Production Hammad Azhar said “Pakistan’s economy continues to improve”.
“The trade deficit continues to shrink and industrial production is showing strong growth,” he said.
Pakistan’s economy continues to improve. Pakistan has posted a Current Account Surplus for the fourth successive month of the fiscal year (total $1.2BN). The Trade Deficit continues to Shrink and Industrial Production is showing Strong Growth.
— Hammad Azhar (@Hammad_Azhar) November 19, 2020
Meanwhile, Planning and Development Minister Asad Umar said, “This is the fourth month of current account surplus. We inherited the biggest current account deficit in history with monthly current account deficits of $2bn when the government was formed!”
382 million $ current account surplus in Oct. This is the 4th month of current account surplus. Cumulative surplus jul to oct is $ 1.2 billion. We inherited the biggest current account deficit in history with monthly current account deficits of $2 billion when govt was formed!
— Asad Umar (@Asad_Umar) November 19, 2020