Pakistan’s economy is moving in the right direction, Prime Minister Imran Khan claimed on Monday after the current account balance posted a surplus of $424mn in July 2020 for the country.
“MashaAllah Pakistan’s economy is on the right track. After current account balance posted deficit of $613mn in July 2019 and a deficit of $100mn in June 2020, in July 2020 current account balance swung upwards to a surplus of $424mn,” Khan said, in a series of tweets.
Imran Khan added in his tweet that this drastic change is the result of “continuous improvement in exports which increased by 20 percent as compared to in June 2020 and record remittances”.
As per the data released by the Ministry of Commerce, Pakistan exports for the month of July stood at $1.99bn as compared to $1.88bn recorded in July 2019.
It was earlier reported that remittances from Pakistani workers employed abroad hit the highest level for a single month in July, increasing 36.5% year on year, mostly thanks to less spending on Haj pilgrimages because of the coronavirus pandemic.
The global economic slowdown had raised fears that remittances, key to Pakistan’s dwindling foreign exchange reserves, would decline given falling employment in countries from where most of the money is sent – particularly Saudi Arabia and United Arab Emirates.
But July remittances rose to $2.768 billion, the State Bank of Pakistan said, adding the increase was up 12.2% from June, when remittance numbers were also high.
Pakistan has opened all sectors of the economy in a bid to revive its hard-hit economy. The country has reported 289,215 positive COVID-19 cases of which 269,087 have recovered, with 6,175 deaths. (WION)
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