Karachi: The State Bank of Pakistan (SBP) on Wednesday announced that the country’s current account balance had registered a surplus after seven months; corresponding with a rise of USD 13 million recorded during May 2020 — a news source reported. This figure contrasts starkly with the USD 530 million deficit recorded in April earlier this year, and the USD 1 billion deficit recorded in May 2019.
However, this change comes on the back of a high decline in economic activity in the country that was a result of falling exports and imports. Export earnings went down to a 13-year low at USD 1.27 billion, while the imports went down to a 10-year low at USD 2.8 billion during the month. Nevertheless, the rate of remittances improved and the deficit in services also declined.
Still, in the long run, Pakistan’s current account deficit has declined by as much as 73.6%. The current account deficit during the first 11 months of the current fiscal year stood at USD 3.29 billion, as compared to the USD 12.45 billion recorded for the same period during the previous fiscal year.