Pakistan’s current account recorded a surplus for the second consecutive month in April, with analysts attributing this development to a reduction in imports resulting from administrative measures.
Data released by the State Bank of Pakistan (SBP) on Tuesday revealed that the country achieved a surplus of $18 million this month, compared to a current account deficit of $640 million last year. The current account had previously attained a surplus in March for the first time since November 2020, reaching $654 million, the highest since February 2015.
According to experts, April’s current account surplus was lower than expected due to the SBP’s clearance of an import backlog.
Overall, during the ten months of the current fiscal year, the current account deficit amounted to $3.25 billion, marking a 76 per cent decline compared to $13.65 billion for the same period last year.
According to the SBP data, the import of goods experienced a 38 per cent year-on-year decrease, amounting to $3.7 billion in April. In contrast, exports also fell by 33 per cent to $2.11 billion.
Furthermore, remittances declined by 29 per cent to $2.2 billion.
The current account has achieved a surplus for two months, primarily due to the containment of imports through administrative measures.
According to Geo, the decrease in imports has led to a slowdown in large-scale manufacturing in the country, impacting overall activity levels in sectors like services and trade.