For the first time in four years, Pakistan’s current account surprisingly turns surplus

For first quarter of the ongoing fiscal year, our current account deficit has fallen by 73.5pc, as compared to the same period last year - PM Khan

0
  • In October, due to significant reduction in imports, inflows of foreign currencies exceeded the outflow by $99m.
  • The policies introduced by the government have finally started to bear fruits as the current account deficit shrank considerably.

Positive

After a gap of more than four years, Pakistan’s current account unexpectedly turned positive. In October, due to a massive reduction in imports, inflows of foreign currencies exceeded the outflow by $99m.

SBP Data:

According to the data released by the State Bank of Pakistan (SBP), the policies introduced by the government have finally started to bear fruits as the current account deficit shrank.

When it comes to the month of October, the data showed that the current account was positive $99m against a net deficit of $1.28b, when compared to the same period last year.

Big News

While talking to a source, BMA Capital Executive Director Saad Hashmi said,

“This is surprising. This is a very big news”.

Execution of essential reforms like rupee depreciation, high benchmark lending rate, and regulatory duty on imports had raised expectations of further drop in the present account deficiency in October.

The surplus in October and decrease in four-month current account deficit was for the main part accomplished due to a massive decrease in imports.

“However, no one had expected the current account to show a surplus” Saad Hashmi.

PM Congratulates the Nation:

Prime Minister of Pakistan Imran Khan also shared his thoughts on this achievement through his twitter account and said that Pakistan is finally heading towards the right direction. He further said that our reforms are finally bearing fruits and for the first time in four years, Pakistan’s current account turned positive in October 2019.

He further congratulated the exporters as the exports in October 2019 witnessed a rise of more than 20 pc, as compared to the 9.6 pc during the same time last year.

Lately, the SBP governor said that the fall in current account deficit is immensely positive for Pakistan as it is an indication of macroeconomic strength.


Also See:

Pakistan’s Trade Deficit Reduces By 34 Percent

What are your thoughts on this? Share with us in the comments bar below.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept

>