Prime Minister Imran shares good news with public
Prime Minister Imran Khan sharing great news with Pakistanis said the country is headed in the right direction finally as the current account was in surplus of $73 million during September, bringing surplus for 1st quarter to $792 million compared to a deficit of $1,492 million during the same time in 2019, reported 24NewsHD TV channel.
Great news for Pakistan. We are headed in right direction finally. Current Account was in surplus of $73 mn during Sept, bringing surplus for 1st qtr to $792 mn compared to deficit of $1,492 mn during same time last yr. Exports grew 29% & remittances grew 9% over previous month.— Imran Khan (@ImranKhanPTI) October 21, 2020
Imran Khan said exports grew 29 percent and remittances also grew nine percent over the previous month.
The Prime Minister shared the good news amid the ongoing rising political temperature in the country. The government and opposition parties are blaming each other for incompetence and the current state of the high inflation rate.
On August 24 last, Prime Minister Imran Khan had said that in July 2020 current account balance swung upwards to a surplus of $424 million. He said: “After current account balance posted deficit of $613 million in July 2019 and a deficit of $100 million in June 2020, in July 2020 current account balance swung upwards to a surplus of $424 million.”
Prime Minister Khan said this strong turnaround is a result of a continuing recovery in exports, which rose 20 % compared to June 2020, & record remittances.
Pakistan’s remittances from overseas Pakistanis had reached $2,768million in July 2020, highest ever amount in one month in the history of Pakistan.
The current account deficit - difference between the government’s higher foreign expenditure and lower income – had narrowed by a massive 78% to $2.96 billion in the previous fiscal year ended June 30.
According to the State Bank of Pakistan, the current account deficit shrank to 1.1% of gross domestic product (GDP) in FY20 compared to 4.8% ($13.43 billion) in FY19.
The much-needed improvement in the current account deficit in FY20, however, was initially achieved by compromising economic growth. Later, the Covid-19 outbreak slowed down the economy further and caused negative growth for the first time in 68 years.