Current account rises into surplus for second consecutive month: SBP

KARACHI: The country posted a $13million current account surplus in May for the second consecutive month, as data released by the State Bank of Pakistan (SBP) showed the government has succeeded in bringing down the current account deficit.

According to a statement, the current account deficit narrowed by 73.6% to $3.3 billion during July-May 2019-20 from $12.5 billion during the same period last year.

SBP also revealed that Pakistan’s current account has turned into a surplus of $13 million in May against a deficit of $530 million in April and $1,004 million in May 2019.

The CAD fell to $3.3bn compared to $12.45bn during the last 11 months.

Subsequently, the trade deficit fell to 17.94 percent from 29 percent in the last 11 months. Exports of services clocked in at $20.9bn compared during last fiscal year. Imports of services, on the other hand, decreased by 19 percent to $38.87bn in FY19.

Earlier in the day, the State Bank of Pakistan (SBP) said on Wednesday it has received one billion dollars – 500 million dollars each from the World Bank and the Asian Development Bank.

Read More: Pakistan receives $500 million each from World Bank, ADB

The ADB approved a $500 million loan to help the country tackle the ongoing coronavirus and strengthen the health sector, while the World Bank approved a $500 million load to help improve the healthcare and education systems.