Current account in surplus for fourth month in a row

Pakistan’s current account posted a surplus for the fourth consecutive month, clocking in at $334 million in June 2023, SBP data showed Tuesday.

According to the data released by the State Bank of Pakistan (SBP), the current account balance posted a surplus of $334 million for the month of June compared to a deficit of $2.32 billion during the same period of the previous year.

Current Account recorded a surplus of $334 million in Jun 2023.https://t.co/Od8ikVvXrd#SBPBOP pic.twitter.com/llVGIKiKNa

— SBP (@StateBank_Pak) July 18, 2023

This is the fourth consecutive current account surplus on a monthly basis, starting March 2023.

“On a YoY basis, the primary reason behind the surplus was a 55% YoY decline in total imports along with a 29% YoY decrease in exports,” said brokerage house Arif Habib Limited (AHL) in a note. “Moreover, remittances decreased by 22% YoY,” it added.

In a tweet today, Finance Minister Ishaq Dar shared some figures of the current account and said “that’s how Pakistan didn’t default”.

Current Account Surplus (CAS) for June2023 closed @ $ 334 million against Current account Deficit (CAD) of
$ 2,321 million in June2022

CAD for FY23 closed @
$ 2.56 billion, which is 14.65% of CAD of US$ 17.48 billion for FY22.

That’s how Pakistan didn’t default! AlhamdoLilah

— Ishaq Dar (@MIshaqDar50) July 18, 2023