Prime Minister Imran Khan seems happy about the development that the country’s current account balance is increased by $424 million in July. He declared that current account deficit (CAD) in last year was $613 million which is recorded as $100 million in last month of July. Imran Khan is showing green flags that “economy is on the right track”.
He expressed it with pride that the surplus in current account balance is due to record remittances and on-going recovery in exports which raised to 20% in June 2020. State Bank of Pakistan also acknowledged this fact that the country received record high of remittances $2.768 billion in the first month of recording yearly taxes. Total recorded remittance for the fiscal year is $23 billion.
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SBP declared this ($2.768 billion) as the highest ever received remittances in the country in a single month. Prime minister also tweeted this achievement on his official account about this good news last week. Despite crucial year, he has made history in remittance from overseas Pakistan in one month this year.
Since PTI came in power, CAD has shown a remarkable decrease from $20bn to $3bn and exports have also been increased. This data is provided by Finance Minister recorded earlier this month. Despite the on-going pandemic of Covid-19 where everything is stagnant, due to proper debt management, the cost of borrowing had decreased remarkably. The reason behind this increase is also this pandemic which caused more people from abroad to send their money to their families in Pakistan in this difficult time. This resulted in more remittances as explained by the currency dealers and financial sector people.
SBP also reported that Saudia Arabia sent the highest amount of remittances receiving $821 million in July this year. Pakistan has been receiving the highest remittances from Saudia Arabia for the past several years as more than one million Pakistanis are employed there.