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.
MashaAllah Pakistan's economy is on the right track. 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.
— Imran Khan (@ImranKhanPTI) August 24, 2020
This strong turnaround is a result of continuing recovery in exports, which rose 20 % compared to June 2020, & record remittances.
— Imran Khan (@ImranKhanPTI) August 24, 2020
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.