Pakistan posted $424 million current account surplus in July: SBP

KARACHI: State Bank of Pakistan (SBP) has said that Pakistan’s current account swung into a surplus of $424 million in July after posting a deficit of $100 million in June.

The central bank said that this was the fourth monthly surplus since October 2019. It also acknowledged that the surplus was a “significant improvement” on the $613 million deficit recorded in July 2019.

The SBP said that apart from the continued recovery in exports and record-high remittances, the strong turnaround was also due to the support from policy and administrative initiatives by the central bank and the government.

The central bank also said that the exports for the sustained strong recovery with month-on-month growth of further 19.7% in July on top of 25.5% in June.

2/3 This is the fourth monthly surplus since last October, and a significant improvement on the deficit of $613 mn in the same month last year.

— SBP (@StateBank_Pak) August 24, 2020

Earlier Prime Minister Imran Khan announced that the country’s economy was on the “right track” after Pakistan’s current account balance showed a surplus for July.

“MashaAllah Pakistan’s economy is on the right track. After current account balance posted deficit of $613 mn in July 2019 and a deficit of $100 mn in June 2020, in July 2020 current account balance swung upwards to a surplus of $424 mn,” tweeted the prime minister.

PM Imran Khan credited the strong turnaround to the continuing recovery in exports, which increased by 20% compared to June 2020 and record remittances.

Federal Minister for Planning and Development said the government had inherited a current account deficit of $2 billion per month as a legacy from PML-N which led to massive external debt and comprised our independence and security.

PTI govt inherited a current account deficit of 2 billion $/ month as a legacy of PML N. In july 2020 Pakistan ran a current account surplus of 424 million $. Remember the current account deficits have led to massive external debt and compromises our independence and security

— Asad Umar (@Asad_Umar) August 24, 2020

Last week, the prime minister had announced that remittances from overseas Pakistanis had reached $2,768 million in July 2020 – the highest ever amount in one month in the history of Pakistan.