Pakistan's economy on right track: PM Khan

By: News Desk      Published: 10:37 AM, 24 Aug, 2020
Pakistan's economy on right track: PM Khan

Prime Minister Imran Khan Monday claimed that Pakistan's economy is on the right track.

Taking to Twitter, PM Khan wrote that in July 2020 current account balance swung upwards to a surplus of $424 million.

He wrote: “After current account balance posted deficit of $613 mn in July 2019 & a deficit of $100 mn in June 2020, in July 2020 current account balance swung upwards to a surplus of $424 mn.”

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.