Current account deficit falls to $1.5bn: SBP

ISLAMABAD: The country’s current account deficit, in the first four months of the current fiscal year, shrank by a massive 73.5 per cent to $1.5 billion, ARY News reported.

In a statement, State Bank of Pakistan (SBP) said that the improvement reflected a notable reduction in imports, a modest growth in exports and steady workers’ remittances.

“On account of favorable balance of payment developments, the rupee has appreciated 5.6 percent since its low in June 2019,” read the statement.

Since the beginning of the fiscal year, gross reserves have risen by $1.16 billion through November 15 and the SBP has reduced its foreign currency swaps by $1.95 billion through end of October.

The report further said that FBR tax collections grew 16.2 percent during the first four months of the fiscal year-2020 as compared to 6.4 percent during the same period last year. While inflation rose by 1.8 per cent in October-2019, read the statement.

Earlier on November 18, Adviser to the Prime Minister on Finance Dr Abdul Hafeez Sheikh had claimed that the current account deficit had shrunk by a massive 63.1 per cent in the first quarter of current fiscal year.

Talking to renowned anchorperson in Islamabad, Hafeez Sheikh had said that trade deficit fell by 33.5 per cent during the first quarter of the fiscal year-2019-20. He had noted that exports increased by 3.8 per cent during the period.

The finance adviser had also claimed, “The government has taken concrete measures to eliminate circular dept by December 2020.”