A big economic achievement for Pakistan

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A big economic achievement for Pakistan

Pakistan’s current account maintained a surplus with a handsome value of $1.6 billion in the five months of the current financial year, mainly due to enhanced inflows from remittances and export receipts.

The current account also posted a surplus-value of $326 million for the straight five months of the financial year that added further to the overall surplus-value of the current account in FY21. ------------------------------

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According to the State Bank of Pakistan (SBP), the current account surplus has reached $1.6 billion compared to a deficit of $1.7 billion.

A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities told ProPakistani,

PTI is having a windfall stroke of luck during COVID times. Lesser imports, more formal channel remittances, and a marginal uptick in exports are keeping state coffers filled. Expect these months to continue for the next few months. Confidence is building as PKR stabilizes.

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 November 2020, both exports and imports picked up, reflecting a recovery in external demand and domestic economic activity.

The trade deficit of the goods stood at $8.6 billion during the period of July to November 2020 as compared to $8 billion recorded in a similar period of the last year. The trade deficit of services reduced to $3.08 billion from July to November 2020 compared to $3.77 billion recorded in a similar period of the last financial year.