Pakistan’s current account recorded a surplus for the fifth consecutive month in November at $447 million as compared to a deficit of $326 million during the same time last year, data released by the State Bank of Pakistan (SBP) showed on Tuesday.
“In contrast to the previous five years, the current account has been in surplus throughout FY21 due to an improved trade balance and a sustained increase in remittances,” the central bank said on Twitter.
“In November 2020, both exports and imports picked up, reflecting a recovery in external demand and domestic economic activity.”
1/3 In Nov20, the current account surplus rose further to $447 mn against a deficit of $326 mn in Nov19. So far in FY21, the surplus has reached $1.6 bn compared to a deficit of $1.7 bn over the same period last year. For details, see https://t.co/Od8ikVvpBF pic.twitter.com/D9Ae5h46rN
— SBP (@StateBank_Pak) December 22, 2020
On a cumulative basis, the total current account surplus during the July-November period rose to a record $1.64 billion against a deficit of $1.745bn during the same period last year.
Remittances during the five months under review jumped 27 per cent to $11.77bn after Covid-led travel restrictions increased flows through legal channels.
“This turnaround in the current account, together with an improvement in financial inflows, raised SBP’s foreign exchange reserves by around $1bn in November 2020. At $13.1bn, they are now at their highest level in 3 years,” the state bank said.
3/3 This turnaround in the current account, together with improvement in financial inflows, raised SBP’s FX reserves by around $1 bn in Nov20. At $13.1 bn, they are now at their highest level in 3 years.
— SBP (@StateBank_Pak) December 22, 2020
