Pakistan’s current account went into deficit of $662 million in December after a five-month surplus.
According to the report of the State Bank of Pakistan, in the first half of the current financial year, the current account surplus was $1.13 billion. In the first half of the last financial year 2020, the current account deficit was $2 billion.
According to the report, for the first time in five years, the current account surplus was five months apart from December. The State Bank of Pakistan (SBP) said this was due to improved trade balance and increased remittances.
Reducing the current account deficit has been a major challenge for the Pakistan Tehreek-e-Insaf (PTI) since it came to power in 2018. The general trend is that Pakistan is spending $2 for every 1 dollar earned due to imbalance in imports and exports.