The State Bank of Pakistan (SBP) reported late on Wednesday night that Pakistan’s current account deficit (CAD) decreased to $0.7 billion in August from $1.2 billion the previous month. This represents a decrease of 41.67% month over month.
According to a tweet from the central bank, the current account deficit for the first two months of the current fiscal year decreased from $1.9 billion to $0.5 billion. This was mainly because exports rose by $0.5 billion while imports fell by $0.2 billion, it said.
According to SBP data, the balance of trade in goods and services decreased by 0.54 percent on a monthly basis to $3.98 billion.
Imports of goods totaled $5.75 billion in August, up from $5.35 billion the month before. On the other hand, exports dramatically jumped to $2.81 billion, up 23.38 percent from $2.28 billion in July.
Remittances from workers totaled $2.72 billion, up from $2.52 billion in the previous month. Pakistan had a huge current account deficit of $17.3 billion, or an average of $1.44 billion per month, in the preceding fiscal year.
According to a Mettis Global research, the central bank anticipates that CAD would decline to $10 billion this year.
Current Account Deficit (CAD) fell to $0.7bn in Aug compared to $1.2bn in Jul. Cumulatively, Jul-Aug FY23 CAD declined by $0.5bn to $1.9bn compared to the same period last year mainly due to increase in exports by $0.5bn & contraction in imports by $0.2bn. https://t.co/q3LNv3HgLs pic.twitter.com/lpPFFNTf06
— SBP (@StateBank_Pak) September 21, 2022
