After five consecutive months of surplus, the country’s current account reached a deficit of 662 million in December.
According to the data released by the State Bank of Pakistan (SBP) shows that the current account had a surplus of 513 million dollars in November, bringing the monthly deficit to more than 130% on an annual basis.
The deterioration in the current account seems to have started with a sudden increase in imports last month as imports of goods reached 5 billion in December, an increase of 940 million dollars or 23 percent over November, while on an annual basis last month An increase of more than 32%. In contrast, exports of goods increased marginally by 0.6 percent, taking the balance of trade to more than 50 percent in December.
It should be noted that the current account reflects the overall transactions of the country with the world while the deficit shows that the nation is a net borrower.
Overall, the current account had a surplus of 1.13 billion dollars during the first two quarters of 2020, compared to a deficit of more than 2 billion dollars in the same period last fiscal year.
However, according to SBP data, this was the first time in the last decade that the country had recorded a current account surplus for two consecutive quarters. Keeping in mind that preventing the current account deficit from growing has been a major achievement of the government on the economic front.
Web Desk is the news author at Research Snipers which mainly covers Pak News, Technology News, Business News, and Entertainment served by Research Snipers Staff and editors.