ISLAMABAD – In a major economic development, cash-strapped Pakistan posted a current account surplus for the first time in two years, data released by the central bank showed on Wednesday.
According to the State Bank of Pakistan, the current account posted a soaring surplus of $654 million last month — March 2023 — against a revised deficit of $36 million in February 2023.
In a statement, State Bank said “Cumulatively, the current account deficit reduced to $3.4 billion in July-March FY23 against a deficit of $13 billion in July-March FY22”. The fifth most populous nation posted the current account surplus for the first time since November 2020.
Current Account Balance (CAB) recorded $654 million surplus in Mar 2023 against a deficit of $36 million in Feb 2023. Cumulatively CAD reduced to $3.4 billion in Jul-Mar FY23 against a deficit of $13.0 billion in Jul-Mar FY22.https://t.co/q3LNv3HOB0https://t.co/Od8ikVvXrd pic.twitter.com/RNYyFCJeZJ
— SBP (@StateBank_Pak) April 19, 2023
Finance czar Ishaq Dar also shared latest figures in a social media post.
Latest Update:
Current Account Surplus (CAS) of $654 million recorded for March 2023
In February 2023 it was Current Account Deficit (CAD) of $36 million
Cumulative Numbers:
CAD stands at $3.4 billion for July-March FY23 against CAD of $13.0 billion for July-March FY22.— Ishaq Dar (@MIshaqDar50) April 19, 2023
Experts claimed that the surplus stemmed from a decline in imports. Amid severe restrictions on imports, Pakistan posted a surplus that was also in line with the expectations of foreign experts.
The recent development comes as remittances soared by $500 million in March on a Y-O-Y basis while trade remained restricted. Meanwhile, the surplus is unmanageable in the long run as the country of over 220 million is an import-oriented nation.
Pakistan’s fiscal deficit nears Rs1 trillion in first quarter of FY23
