PM Imran sees a better economy as Pakistan exports rise, current account record surplus of $424m in July

Pakistan posted a record $424 billion surplus in current account balance during July

Pakistan reported a 20% month over month increase in exports for the month of July and a record surplus of $424 million in the country’s current account balance. The exports were on the decline in the four previous months. With ease in COVID-19 related restrictions, the industries are getting back to their normal production.  

Prime Minister Imran Khan while heralding his government’s achievements and felt that the economy of the country is heading in the right direction.

“MashaAllah, Pakistan’s economy is on the right track. After current account balance posted deficit of $613 mn [million] in July 2019 & a deficit of $100 mn in June 2020, in July 2020 current account balance swung upwards to a surplus of $424 mn,” Khan tweeted.

“This strong turnaround is a result of continuing recovery in exports, which rose 20% compared to June 2020, & record remittances,” Khan added.

Currently, the current account deficit has declined 73.6% to $3.29 billion in the first 11 months (July-May) of the fiscal year 2019-20 compared to $12.45 billion in the same period in the prior year. The slowdown in imports and exports signal a decline in the economic activities in response to the coronavirus pandemic are a factor behind the change. An increase in inward remittances, decline in trade deficit of services and increase in other current transfers are also reasons behind the surplus.

There have been some positive indicators pointing towards a better economy. Apart from a positive balance of payments, the inflow of inward remittances hit a record of $2.77 billion during July. A recent review by Moody’s for a potential downgrade in credit ratings also ended on a good note with the rating maintained and the outlook positive.  

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