Pakistan’s current account records $18m surplus in April

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KARACHI , May 17, 2023: The country’s current account recorded a surplus for the second consecutive month in April this year, the State Bank of Pakistan (SBP) data shows.

The country posted a surplus of $18 million this month compared to a current account deficit — the gap between a country’s expenditures and income — of $640 million last year.

In March, the current account was in surplus for the first time since November 2020 and clocked in at $654 million, the highest since February 2015.

Economic experts attribute the development to a reduction in imports owing to administrative measures.

Current Account Balance (CAB) recorded $18 million surplus in April 2023 against a surplus of $750 million in March 2023.https://t.co/q3LNv3HOB0https://t.co/Od8ikVvXrd#SBPBOP pic.twitter.com/K9aVeuZJcL

They say April’s current account surplus was lower than expected because of the SBP’s clearance of an import backlog.

The current account deficit came in at $3.25 billion in the first 10 months (July-April) of the current fiscal year, declining 76 per cent compared to $13.65bn during the same period last year.

According to the central bank’s data, the imports of goods plunged 38pc year-on-year to $3.7bn in April, while the exports also dropped 33pc to $2.11bn.

Remittances also witnessed 29pc decline to reach at $2.2bn.