August 24, 2020 (MLN): Pakistan’s current account balance has swung into a surplus of $424 million in July 2020.
Compared to the previous month i.e. June 2020, current account posted a deficit of $100 million.
This is the fourth monthly surplus since last October, and a significant improvement on the deficit of $613 million in the same month last year.
According to SBP, the strong turnaround is mainy due to a continued recovery in exports and record-high remittances with support from several policy and administrative initiatives by SBP and government. Moreover, exports sustained strong recovery, with MoM growth of further 19.7% in July'20 on top of 25.5% in June'20.
According to the latest data issued by SBP, the Exports of Goods during the month improved by $311 million, up by 20% MoM, however, Imports of Goods also increased by $70 million, up by 2% MoM, resulting in a 12% MoM improvement in Trade deficit as the rise in exports was larger than the imports.
The trade deficit of Goods on yearly basis also improved by 12% as imports declined by 13% YoY and exports also went down by 15%.
Trade balance in services, while still negative, also improved by 14% YoY to $362 million courtesy of a 9% YoY reduction in imports though the exports also decreased by 5% YoY. While on monthly basis, the trade deficit in services increased by 62% compared to $224 million in June’20 as imports of services jumped by 29% MoM and exports by 11% MoM.
Worker remittances during July’20 also improved notably by 36% YoY to $2.768 billion from $2 billion in July 2019. Whereas, compared to the month of June’20, worker remittances stood at $2.46 billion, showing a growth of 12% MoM.
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Compared to the previous month i.e. June 2020, current account posted a deficit of $100 million.
This is the fourth monthly surplus since last October, and a significant improvement on the deficit of $613 million in the same month last year.
According to SBP, the strong turnaround is mainy due to a continued recovery in exports and record-high remittances with support from several policy and administrative initiatives by SBP and government. Moreover, exports sustained strong recovery, with MoM growth of further 19.7% in July'20 on top of 25.5% in June'20.
According to the latest data issued by SBP, the Exports of Goods during the month improved by $311 million, up by 20% MoM, however, Imports of Goods also increased by $70 million, up by 2% MoM, resulting in a 12% MoM improvement in Trade deficit as the rise in exports was larger than the imports.
The trade deficit of Goods on yearly basis also improved by 12% as imports declined by 13% YoY and exports also went down by 15%.
Trade balance in services, while still negative, also improved by 14% YoY to $362 million courtesy of a 9% YoY reduction in imports though the exports also decreased by 5% YoY. While on monthly basis, the trade deficit in services increased by 62% compared to $224 million in June’20 as imports of services jumped by 29% MoM and exports by 11% MoM.
Worker remittances during July’20 also improved notably by 36% YoY to $2.768 billion from $2 billion in July 2019. Whereas, compared to the month of June’20, worker remittances stood at $2.46 billion, showing a growth of 12% MoM.
Pakistan posts $424 Million Current Account Surplus in July - Mettis Global Link - News
August 24, 2020 (MLN): Pakistan’s current account balance has swung into a surplus of $424 million in July 2020. This surplus during the month is emanated from higher workers remittances and recovery in exports on sequential basis. Compared to the previous month i.e. June 2020, current account...
mettisglobal.news
