Pakistan in Current Account Surplus!
With SBP and its attempts to combat the longstanding current account deficit in the country; Pakistan in current account surplus for the past 2 months!
“There’s always light after dark,” says Han Nolan. We couldn’t agree more, Pakistan has been facing some tough times; economically, financially, and socially. However, as mentioned, there is always some glimpse of hope by the end of the day. This is the second straight month for Pakistan in current account surplus, as announced by the State Bank!
Due to the number of remittances sent in by the expatriates as well as cheaper imports, State Bank further disclosed that Pakistan in current account surplus amounted to $508 million and $297 million during July and August 2020.
2/2 Cumulatively CAB reached a surplus of $805 mn during Jul-Aug FY21 compared to a deficit of $1.2 bn in the same period last year. Efforts to attract workers’ remittances, flexible exchange rate and relatively benign import prices explain the improving current account balance.
— SBP (@StateBank_Pak) September 23, 2020
State Bank of Pakistan further said that the reason why Pakistan is in current account surplus is because of the constant efforts made by the state to attract workers, make remittances flexible, and improve the exchange rate while also working on import prices.
Moreover, Imran Khan, the Prime Minister also disclosed that remittances sent by overseas Pakistanis had increased from July 2020- $2.77 billion to $2.10 billion in August 2020! This was seen as a 24.4% increase in income inflow as compared to the same year, in 2019. This was “in addition to the record $2,768 million in July 2020”, said Prime Minister, Imran Khan, on Twitter. He further said that within the first 2 months of this fiscal year, remittances had been up to 31% than the same period last year resulting in Pakistan in current account surplus.
Overseas Pakistanis sent $2,095 million in remittances in Aug 2020 — 24.4% higher than Aug. last year — in addition to the record $2,768 million in July 2020. For the first two months of this fiscal year our remittances are up 31% over the same period last year. Alhamdulillah
— Imran Khan (@ImranKhanPTI) September 14, 2020
The initiative is probably a wonderful investment opportunity for the Pakistani community living overseas, the premier’s aide had said, noting that digital banking had been an ongoing request of the Pakistani community.
Furthermore, the State Bank is hopeful to continue Pakistan in current account surplus as they are currently undergoing several developments and making constant efforts in the Pakistan Remittances Initiative (PRI) to encourage overseas Pakistani to send in their incomes. Also on their list is the reopening of multiple businesses in several host countries such as The United States of America, Dubai, and other Middle Eastern states.
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