State Bank of Pakistan (SBP) has revealed that Pakistan’s Current Account Balance (CAB) remains in surplus for the second consecutive month in August 2020.
According to SBP, the CAB surplus happened with impressive growth in overseas workers’ remittances and lower import payments. CAB surplus amounted to $508 million and $297mn during the month of July and August 2020 respectively, reports BRecorder.
Meanwhile, the cumulatively CAB reached a surplus of $805mn during Jul-Aug of fiscal year 2020-21 compared to a deficit of $1.2 billion recorded in the same period last year.
The central bank was of the view that efforts to attract workers’ remittances, flexible exchange rate, and relatively benign import prices explain the improving current account balance. Moreover, the Balance of Trade in Goods and Services in August stood at a deficit of $1.751bn as compared to a deficit of $2.018bn. The Current Account percentage of GDP remained at 1.3pc in August as compared to 2.2pc recorded in July 2020.