Current account deficit dropped by 72.6 pc in Nov, says Hafeez Shaikh

ISLAMABAD: Adviser to the Prime Minister on Finance Dr Abdul Hafeez Shaikh said on Friday current account deficit declined by 72.6 per cent in November and 73 per cent between July-Nov this year.

Sharing latest figures on external deficit and foreign reserves on Twitter, he said in five months, an increase in State Bank of Pakistan’s reserves by “$1.8B & reduction of $3B in FX swaps/forward liabilities increased FX buffer by $4.8B,” providing further stability to external account.

Current Account Deficit is down by 72.6% in Nov 2019 & 73% between July-Nov 2019 vs same period in 2018.
In 5 months, increase in SBP Reserves by $1.8B & reduction of $3B in FX swaps/forward liabilities increased FX buffer by $4.8B providing further stability to external account. pic.twitter.com/TLODiizRsi

— Dr. Abdul Hafeez Shaikh (@a_hafeezshaikh) December 20, 2019

It is noteworthy that the International Monetary Fund (IMF) has approved a second tranche worth of $450 million for Pakistan under the $6 billion Extended Fund Facility in a meeting of its executive board in Washington.

The IMF in its board meeting said that Pakistan’s economic reform program is on track while decisive policy implementation by the Pakistani authorities is helping to preserve economic stability in the country.

IMF said that the authorities remain committed to expanding the social safety nets, reducing poverty, and narrowing the gender gap.