KARACHI: State Bank of Pakistan (SBP) has said the Current Account Deficit remained surplus for the second consecutive time during the month of August this year.
In its tweets on Wednesday, the central bank said the current account balance cumulatively reached a surplus of $805 million during the first two months of current fiscal year compared to a deficit of $1.2 billion in the same period last year.
The bank said efforts to attract workers’ remittances, flexible exchange rate and relatively benign import prices explain the improving current account balance.
Current Account Balance (CAB) turned into a surplus for the second consecutive month in August 2020 led by impressive growth in remittances and lower import payment. The surplus amounted to $508 million and $297 million during July and August 2020.
Pakistan’s current account logged a surplus in the first month of the current fiscal year compared to the deficit a year earlier as trade balance and foreign inflows improved with ease in lockdown related to coronavirus.
Current account recorded a $424 million surplus in July as opposed to a current account deficit of $613 million in the corresponding month a year ago. The deficit stood at $100 million in June this year.