The tree of long-term economic policies is bearing fruits as Pakistan’s current account deficit diminishes drastically during first two months of the current fiscal year, State Bank of Pakistan (SBP) reported.
The country’s economy is going through a phase of resurgence as macro indicators are turning green from red.
As latest reported by the central bank, Pakistan’s current account deficit has narrowed to US $50 million in February from US $210 million in January which is an improvement of around 100%.
Similarly, the current account deficit stood at US $652 million in the last month of the outgone year. However, a massive shrinkage has been witnessed since then.
1/3. In February 2021, CAD narrowed to $50 million from $210 million in January 2021 and $652 million in December 2020. See data at: https://t.co/Od8ikVvpBF pic.twitter.com/3F6sw3Fdtx
— SBP (@StateBank_Pak) March 21, 2021
Meanwhile, the country’s current account has remained in a surplus between July-February of the fiscal year 2020-2021 (FY21).
The current account remained in a surplus at US $881 million as compared to a whopping $ 2.74 billion deficit in the corresponding period of FY 2019-20.
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Regarding improved outlook of the current account, the central bank termed ‘continuous strong’ growth’ in workers’ remittances besides the surge in exports since November last year as reasons behind shrinkage.