ISLAMABAD – Federal Ministers rejoiced on Thursday over Pakistan’s current account witnessed a surplus for the fourth consecutive month in October, rising to $382 million or 1.6 per cent of the gross domestic product (GDP).
“In October, the current account surplus rose further to $382 million from $59 million in September, on the back of a sustained increase in remittances and smaller trade deficit.
This is the fourth successive monthly surplus. Since July, the cumulative current account surplus has reached $1.2 billion, reversing the $1.4 billion deficit recorded in the same period last year,” the State Bank of Pakistan (SBP) said on Twitter on Thursday. According to the SBP, Pakistan’s trade deficit in October had narrowed by 20 per cent to $1.49 billion from $1.86 billion in September.
Meanwhile, remittances during the month recorded at $2.284 billion unchanged from the previous month. The country’s current account has been helped by a significant increase in remittances during the current fiscal year.
Total inflows of remittances have risen to $9.43 billion in four months of current fiscal year, which are up by 26.5 per cent as 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 by 38 per cent to $785 million compared to $1.27 billion. Adviser to the Prime Minister on Finance and Revenue Abdul Hafeez Shaikh said that PTI government had inherited a Current Account Deficit of $19.2 billion. “We reduced it to $3 billion in last fiscal year & now a surplus of $1.2 billion this year with fourth consecutive monthly surplus.” The government would continue its efforts for an export-oriented domestic productivity-driven sustainable growth, he said. He also shared the statistics of current account of last five years.
Current Account was in deficit of $2.4 billion in four months of the fiscal year 2016, deficit of $5.6 billion in 2017, deficit of $5.4 billion in 2018, deficit of $1.4 billion in 2019 and current account in surplus of $1.2 billion in July to October period of the year 2020. Reacting to this development, Minister for Industries and Production Hammad Azhar said Pakistan’s economy continues to improve. Pakistan has posted a Current Account Surplus for the fourth successive month of the fiscal year (total $1.2 billion).
The Trade Deficit continues to shrink and Industrial Production is showing Strong Growth. Federal Minister for Planning and Development Asad Umar also tweeted about the current account surplus. “$382 million current account surplus in October.” he said and added this is the 4th month of current account surplus.
Cumulative surplus in four months (from July to October) is $1.2 billion. “We inherited the biggest current account deficit in history with monthly current account deficits of $2 billion when government was formed,” he added.