Islamabad: The State Bank of Pakistan (SBP) on Tuesday reported that the Pakistan’s current account had registered a surplus for the fifth consecutive month in November, with a value of USD 447 million, according to news sources. This figure is an improvement on the USD 326 million deficit amount recorded during the same time last year.
When compared with the previous five years’ records, Pakistan’s current account has been registering a surplus throughout the (fiscal year) FY2020-21. This surplus has been associated with the improved trade balance and a steady increase in remittances. Reportedly, the country’s import and export numbers had started rising back in November, which was due to a recovery in domestic economic activity and international demand.
As per the SBP data, the accumulative current account surplus during the July-November (FY21) period rose to a record USD 1.64 billion — against a USD 1.745 billion deficit recorded during the same period last year. Additionally, it was reported that remittances during the five months under review spiked by 27% to USD 11.77 billion, after COVID-19’s travel restrictions ‘increased flows through legal channels’.
SBP further reported that due to the improved financial inflows and turnaround in the current account, the federal bank’s foreign exchange reserves had risen by USD 1 billion during November. At their current value of USD 13.1 billion, the reserves are now at their highest levels recorded over the past three years.