Current Account Surplus Jumps to $255 Million in May

The country’s current account posted a surplus of $255 million in May 2023, significantly higher than the surplus of $18 million (revised to $78 million) posted in April 2023. According to data released by the State Bank of Pakistan (SBP), cumulatively the current account deficit (CAD) reduced to $2.943 billion in July-May FY23 against a deficit of $15.160 billion in July-May FY22. This is the third consecutive month that the current account posted a surplus, the country has achieved the surplus after a host of import restriction measures. In March, the country’s current account posted a surplus for the first time since November 2020. During FY22, Pakistan’s current account deficit stood at $17.481 billion. The current account balance is the difference between the government’s foreign income and expenditure, to put it simply a current account deficit occurs when the government’s foreign income is less than expenditure while a current account surplus occurs when foreign income exceeds expenditure.