Current account posts $200m deficit as SBP says economic revival on 'sound footing'

KARACHI: The country’s current account balance (CAB) posted a “small deficit” of $200 million in April 2021 – 61 per cent lower than in April 2020, the State Bank of Pakistan (SBP) said on Tuesday.

The central bank in a statement said, “Through the first 10 months of FY21, CAB remains in surplus of $800mn, a significant turnaround from the $4.7bn deficit during the same period last year.”

With the economy rebounding strongly in the current fiscal year, imports are picking up but are offset by unprecedented growth in remittances and recovery in exports, the SBP said.

“With the CAB contained and FX [Foreign Exchange] reserves at a 4yr high, the economic revival is on a sound and sustainable footing,” it added.

Earlier today, Planning and Development Minister Asad Umar said circular debt recorded a reduction of Rs189 billion during July-April FY 2021.

Taking to Twitter, he said circular debt build-up during July-April this fiscal year was Rs260 billion as compared to Rs449 billion during the same period last year, showing a reduction of 189 billion.

He said the full year circular debt build-up is expected to be more than Rs100 billion and less than the circular debt accumulation in the previous PML-N government’s last year in power.

“This huge improvement in the circular debt build vs last year of PMLn govt has been achieved despite massive increase in capacity payments caused by decisions committed by pml govt,” he maintained.

“PMIK govt improving performance and clearing mess inherited from PMLn in every sector.”