Karachi: Due to an increase in exports and remittances sent by Pakistanis abroad, the country’s current account has recorded a surplus for the third consecutive month.
According to details, exports worth $1.62 billion in October, in which the textile sector outpaced other sectors, and a 24 percent increase in remittances, the current account remained in surplus for the third consecutive time during the current fiscal year.
According to State Bank data, a 300 percent increase was recorded on a monthly basis in October alone, meaning the current account remained in surplus at $349 million, while the current account was in surplus at $86 million in September. In comparison, the country’s current account was in deficit at $287 million in October during the previous fiscal year.
During the first four months of the fiscal year (July to October), the current account remained in surplus by $218 million, while during the same period last year, it was in deficit by $1.53 billion.
The textile sector outpaced other sectors in total exports and according to the data, the total exports of the textile sector in October were $1.62 billion, with an increase of 13.11%.
While the volume of textile exports in October last year was $1.45 billion. If we look at the current fiscal year, the exports of the textile sector have reached $6.14 billion with an increase of 10.44% from July to October, while if we look at other sectors, in the first four months of the fiscal year, the exports of the petroleum sector were $17.8 million, the exports of the manufacturing sector were $1.43 billion, and food exports were $2.36 billion.
According to economists, remittances received more than the estimates of the State Bank and other experts and increased by 24 percent during October, which is the highest in the first four months of the fiscal year. In October, the country received $3.1 billion in remittances, while in October of the previous fiscal year, remittances were $2.53 billion.
Similarly, exports also saw an 11 percent increase during October, and a total of $3 billion worth of exports were made, while in October of the previous fiscal year, exports worth $2.72 billion were made.
Speaking to Express, AKD Securities Director of Research Muhammad Owais Ashraf said that it is expected that the government will maintain the current account at the current level during the fiscal year so that the overall budget deficit can be minimized and the amount required for the next fiscal year can also be reduced.
Regarding remittances, he said that Pakistan is receiving remittances worth an average of three billion dollars every month, due to which the current account deficit is gradually turning into a surplus.
