Pakistan’s current account balance was positive with a $99 million surplus in October 2019, according to data released by the State Bank of Pakistan (SBP).
The current account previously recorded a surplus four years ago in September 2015.
The reduction of the import bill by 21 percent and the rise in exports by 10 percent have added up, resulting in a surplus in October 2019.
The surplus was recorded only in October and there is still a long way to go to recover, stabilize, and sustain growth in the economic indicators.
During the period of July to October 2019, the overall current account was in deficit though it shrank significantly by 73 percent from $5.56 billion to $1.47 billion. This was due to a 37 percent drop in the trade deficit of goods and services.
Economic experts are of the view that the current account situation is likely to settle around $5 billion till the current financial year 2019-20 compared to the budgetary forecast of $7 to $8 billion, which is not an easy task.
The incumbent government witnessed the worst current account situation compared to previous governments. It took all possible measures to contain the deficit and pushed the country towards a loan program from the International Monetary Fund and through friendly countries.
Recalling previous years, the current account showed a deficit of $13.8 billion in the last financial year. It stood at $19.9 billion in the financial year 2017-18. The current account situation can be sustained in the coming financial years provided the measures taken by the government reap benefits.
One of the major factors of the deficit earlier was higher imports on the account of China Pakistan Economic Corridors (CPEC). As the project is being continued, the new initiatives will reflect on the import bill in the coming months.