Prime Minister Imran Khan shares great news for Pakistan

Prime Minister Imran Khan said Wednesday that the exports have grown 29% whereas remittances increased 9% over the previous month.

Taking to his official Twitter handle, the Prime Minister wrote:

“Great news for Pakistan. We are headed in right direction finally. Current Account was in surplus of $73 mn during Sept, bringing surplus for 1st qtr to $792 mn compared to deficit of $1,492 mn during same time last yr. Exports grew 29% & remittances grew 9% over the previous month.”

Great news for Pakistan. We are headed in right direction finally. Current Account was in surplus of $73 mn during Sept, bringing surplus for 1st qtr to $792 mn compared to deficit of $1,492 mn during same time last yr. Exports grew 29% & remittances grew 9% over previous month.

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— Imran Khan (@ImranKhanPTI) October 21, 2020

State Bank of Pakistan (SBP) in its September report, said that Pakistan’s current account surplus was recorded at  $297 million in August, compared to a deficit of $601 million in the same period last year.

The current account surplus has decreased by 71% from $508 million in July, which has been increased from the previously reported figure of 424 million.

From July to August, the total current account surplus was recorded at $805 million, with a deficit of  $1.21 billion in the same period of FY20.

With the second consecutive current account increase in the new fiscal year, the country appears to have improved its external front, which ran a  $20 billion deficit in the fiscal year 2018.

The key factor in turning the current account deficit into a surplus is the sharp decline in imports, although exports have declined throughout the period.

So far, all major indicators of the country’s external account have been positive besides exports, despite support and incentives from the government, as well as subsidies provided by the SBP, exports have not improved.

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