Islamabad: The State Bank of Pakistan (SBP) on Tuesday reported that the Pakistan’s current account had registered a surplus for the fifth consecutive month in November, with a value of USD 447 million, according to news sources. This figure is an improvement on the USD 326 million deficit amount recorded during the same time last year.
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When compared with the previous five years’ records, Pakistan’s current account has been registering a surplus throughout the (fiscal year) FY2020-21. This surplus has been associated with the improved trade balance and a steady increase in remittances. Reportedly, the country’s import and export numbers had started rising back in November, which was due to a recovery in domestic economic activity and international demand.
As per the SBP data, the accumulative current account surplus during the July-November (FY21) period rose to a record USD 1.64 billion — against a USD 1.745 billion deficit recorded during the same period last year. Additionally, it was reported that remittances during the five months under review spiked by 27% to USD 11.77 billion, after COVID-19’s travel restrictions ‘increased flows through legal channels’.
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SBP further reported that due to the improved financial inflows and turnaround in the current account, the federal bank’s foreign exchange reserves had risen by USD 1 billion during November. At their current value of USD 13.1 billion, the reserves are now at their highest levels recorded over the past three years.