Current account in surplus for second month in a row

The current account posted a surplus for the second consecutive month, shrinking the 10-month deficit by 76 per cent year-on-year, the central bank said on Tuesday, following stringent import restrictions by the government to manage an economy in turmoil. The surplus of $18 million in April came after the country’s current account turned to $654m in March — a big monthly figure and the first surplus in over two years. The State Bank has now updated the March surplus to $750m. This has helped contract the ongoing fiscal year’s current account deficit (CAD) by a massive 76 per cent to just $3.26bn in July-April compared to $13.65bn in the same period last year. The financial sector hopes that the country will end up this fiscal year with a minimum current account deficit of $3bn against $17.5bn a year ago. However, the country has yet to come out of the crisis on the external account of the economy and it has failed to convince the International Monetary Fund to release a much-needed tranche of $1.1bn.