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Friday, November 15, 2024

“Remarkable turnaround” in economy despite Covid-19: PM Khan

State Bank of Pakistan's foreign exchange reserves have increased to about $13 billion, which is the highest it has been in the last three years, he added.

On Tuesday, Prime Minister Imran Khan issued a tweet from his official Twitter handle lauding Pakistan’s “remarkable turnaround” on the economy despite an unprecedented surge in Covid-19. 

Khan stated that Pakistan saw a current account (import and export balance) surplus of $447 million in November whereas there was a deficit of $356 million in November 2019. Contrary to the same period last year when there was a deficit of $1.7 billion, a surplus of $1.6 billion has been recorded for the fiscal year so far. 

Read more: How is Coronavirus outbreak affecting Pakistan’s economy?

State Bank of Pakistan’s foreign exchange reserves have increased to about $13 billion, which is the highest it has been in the last three years, he added.

“MashaAllah despite Covid 19 great news on the economy – remarkable turnaround. Current account surplus again in Nov: $447 mn. For fiscal year so far, a surplus is $1.6 bn as opposed to a deficit of $1.7bn same period last yr. SBP’s FX reserves have risen to about $13 bn, highest in 3 yrs,” the premier’s tweet read.

Pakistan has seen a current account surplus for five consecutive months.

 

The current account is in surplus for the first time in five years as a result of improved trade balance and an increase in remittances, the State Bank of Pakistan revealed in a tweet. 

Read more: How is FBR hurting Pakistan economy?

“In Nov20, the current account surplus rose further to $447 mn against a deficit of $326 mn in Nov19. So far in FY21, the surplus has reached $1.6 bn compared to a deficit of $1.7 bn over the same period last year,” the tweet read.

“In contrast to previous 5years, the current account has been in surplus throughout FY21 due to an improved trade balance and a sustained increase in remittances. In Nov20, both exports and imports picked up, reflecting a recovery in external demand and domestic economic activity.”

“This turnaround in the current account, together with improvement in financial inflows, raised SBP’s FX reserves by around $1 bn in Nov20. At $13.1 bn, they are now at their highest level in 3 years.”

Read more: Pakistan Economy: History and Required Reforms 

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