The country’s current account posted a surplus of $255 million in May 2023, significantly higher than the surplus of $18 million (revised to $78 million) posted in April 2023.
According to data released by the State Bank of Pakistan (SBP), cumulatively the current account deficit (CAD) reduced to $2.943 billion in July-May FY23 against a deficit of $15.160 billion in July-May FY22.
Current Account Balance recorded a surplus of US$ 255 million during May 2023 compared to US$ 78 million in April 2023.https://t.co/q3LNv3HOB0https://t.co/Od8ikVvXrd#SBPBOP pic.twitter.com/m8YRpsPCES
— SBP (@StateBank_Pak) June 19, 2023
This is the third consecutive month that the current account posted a surplus, the country has achieved the surplus after a host of import restriction measures.
In March, the country’s current account posted a surplus for the first time since November 2020. During FY22, Pakistan’s current account deficit stood at $17.481 billion.
The current account balance is the difference between the government’s foreign income and expenditure, to put it simply a current account deficit occurs when the government’s foreign income is less than expenditure while a current account surplus occurs when foreign income exceeds expenditure.
