'Strong turnaround': PM Imran announces $424mn current account surplus for July

ISLAMABAD: Prime Minister Imran Khan stated that Pakistan's economy "is on the right track", announcing that the country’s current account balance swung upwards to a surplus of $424 million in July.

"After current account balance posted deficit of $613 mn in July 2019 and a deficit of $100 mn in June 2020, in July 2020 current account balance swung upwards to a surplus of $424 mn,” the prime minister tweeted on Monday.

"This strong turnaround is a result of continuing recovery in exports, which rose 20% compared to June 2020 and record remittances," he wrote.

According to the State Bank of Pakistan, this was the fourth monthly surplus since last October.

“Pakistan’s current account balance swung into a surplus of $424 mn in July 2020 after posting a deficit of $100 mn in June. This is the fourth monthly surplus since last October, and a significant improvement on the deficit of $613 mn in the same month last year,” SBP said.

It added that the strong turnaround was due to a continued recovery in exports and record-high remittances, with support from administrative initiatives by SBP and the government.

“Exports sustained strong recovery, with m/m growth of further 19.7% in July on top of 25.5% in June,” the central bank said.

Pakistan records ‘highest-ever’ remittances in July

Last week the prime minister had announced that the country had recorded its highest-ever remittances from overseas Pakistanis in July 2020, reaching $2,768 million.

On Twitter, the prime minister had shared the statistics, calling it “more good news” for Pakistan’s economy.

“Remittances from overseas Pakistanis reached $2,768 mn in July 2020, highest ever amount in one month in the history of Pakistan. This is 12.2% increase over June 2020 and 36.5% increase over July 2019,” he had written.