Islamabad: The State Bank of Pakistan (SBP) has said in its latest report that the country’s current account remained in surplus of $459 million in May, indicating a partial improvement in the external accounts.
According to the central bank, Pakistan imported $5.6 billion worth of goods from global markets during May, while exports during the same period were $2.3 billion. Thus, the trade deficit in May was recorded at $3.3 billion.
According to the report, although the trade deficit persists, the main reason for the improvement in the external accounts is the increase in remittances from overseas Pakistanis. In May alone, worker remittances reached $4.2 billion, which play an important role in financial stability.
According to the State Bank’s data, Pakistan’s current account had a total surplus of $255 million in the first 11 months of the current fiscal year. The trade deficit reached $24.3 billion during the same period, which is mainly due to a significant increase in imports.
According to the data, Pakistan’s imports during the 11 months were $54 billion while exports were recorded at $29.75 billion. This difference reflects the country’s trade imbalance, however, remittances supported the external accounts.
The State Bank report states that remittances have reached a total of $38 billion in this fiscal year, which has emerged as an important factor in strengthening the country’s foreign exchange reserves and current account position.
According to economists, although a temporary surplus is being seen in the current account, increasing exports and reducing dependence on imports is essential for sustainable improvement.
Economic analysts say that the strong inflow of remittances is a positive sign for the country’s external accounts, however, the trade deficit is still a major challenge that needs to be addressed.
According to the State Bank, the situation of the external accounts in the coming months will depend on the performance of exports, the global market situation and the continuity of remittances.
