Pakistan’s Current Account Surplus rose further, FX reserves at highest level in 3 years

Pakistan’s current account surplus rose further to $447 million in November 2020, against a deficit of $326mn witnessed in the same month last year, revealed State Bank of Pakistan (SBP) on Tuesday.

As per the central bank’s latest data, on a cumulative basis, the country recorded a surplus of $1,640mn during Jul-Nov FY21 as compared to a deficit of $1,745mn in the same period last year.

The SBP further said that 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. In Nov20, both exports and imports picked up, reflecting a recovery in external demand and domestic economic activity, highlighted SBP.

“This turnaround in the current account, together with improvement in financial inflows, raised SBP’s Foreign Exchange reserves by around $1bn in Nov20,” revealed the central bank. At $13.1bn, they are now at their highest level in 3 years.

Prime Minister Imran Khan expressed delight over the latest development terming it a ‘remarkable turnaround.’

“MashaAllah despite COVID-19 great news on economy – remarkable turnaround. Current account surplus again in Nov: $447 mn. For fiscal year so far, surplus is $1.6bn as opposed to deficit of $1.7bn same period last year. SBP’s FX reserves have risen to about $13bn, highest in 3 years,” he tweeted.