By Staff Reporter
KARACHI: Pakistan’s current account posted a surplus for the fourth straight month in June, as the country’s import bill fell sharply amid dollar shortages, data from the central bank showed on Tuesday.
The current account balance, a measure of the flow of goods, services and investments, was $334 million in June, compared with a deficit of $2.32 billion in the same month last year, according to the State Bank of Pakistan (SBP). The surplus was also higher than the $13 million recorded in May.
The improvement in the current account was mainly driven by a 55 percent year-on-year drop in imports, which fell to $3.85 billion in June from $8.53 billion a year ago, as the government imposed restrictions to contain outflow of dollars. Exports also declined by 29 percent to $2.7 billion, while remittances from overseas workers decreased by 22 percent to $1.83 billion.
For the fiscal year that ended in June, Pakistan’s current account deficit narrowed by a massive 85 percent to $2.56 billion from $17.48 billion in the previous year, as imports fell by 29 percent to $60 billion and exports dropped by 11 percent to $35.2 billion.
Finance Minister Ishaq Dar hailed the current account performance as a sign of the country’s economic recovery and stability, saying Pakistan is now in the ‘safe zone’ after efforts of the coalition government led by Prime Minister Shehbaz Sharif.
“As a result of these surpluses, the deficit in fiscal year 2022-23 clocked in at $2.56 billion, as compared to $17.48 billion in FY22,” Dar said in a video message. “We have not only averted a potential default but also ensured timely payments of all international obligations.”
Dar said the government also intends to enhance the foreign exchange reserves to $14-15 billion by the end of its tenure, which is set to expire in August.
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