Pakistan’s C/A maintains surplus for fourth consecutive month

Pakistan’s current account maintained its surplus run for the fourth consecutive month reaching $382 million in the month of October.

As per the State Bank of Pakistan (SBP) figures, in October, the country’s current account surplus rose further to $382 million from $59 million in September. As per the central bank, this comes on the back of a sustained increase in remittances and a smaller trade deficit.

This is the fourth successive monthly surplus. Since July, the cumulative current account surplus has reached $1.2 billion, reversing the $1.4 billion deficit recorded in the same period last year. The Balance of Trade in Goods for the month of October remained at negative $1,497mn as compared to negative $1,866mn recorded in September, declining by $363mn.

Whereas, as per the central bank, workers’ remittances amounted to $ 2.3 billion during October 2020, increasing by 14.1 percent compared to October 2019. During July-Oct FY21, workers’ remittances increased to $9.4 billion, recording a growth of 26.5 percent over the same period last year.

Meanwhile, SBP reserves have increased to US$12.93 billion as of November 13, 2020, which is the highest level since February 2, 2018. Total liquid foreign reserves held by the country rose to US$20.08 billion.