Current Account deficit rises by 14% in July over the year

Current account deficit for the month of July 2018 has reached $2.2 billion, an increase of 11.3% over the deficit recorded in the prior month, according to data released by the State Bank of Pakistan on Monday, August 20, 2018.

During June 2018, the last month of the previous fiscal year, current account deficit was recorded at $1.976 billion. In one month from June to July, the current account deficit has increased by $268 million.

Compared to the corresponding month of the last fiscal year, i.e. July 2017, current account deficit has increased by 13.87% as the deficit stood at $1,932 billion in the same period last year.

Cumulative deficit during the last fiscal year stood at $18.13 billion.

As a percentage of GDP, current account deficit stands at a negative 8.6% of the GDP, while during the same month last year, current account deficit accounted for a negative 7.1% of the GDP.

According to provisional data released by the State Bank, exports of goods (FOB) during July rose by 10.3% over the year as the country exported goods worth $2 billion in July, while the growth in imports surpassed that of exports, having grown at a pace of 19.8% during that period. Compared to $2 billion in exports, the value of imports stood at $5.566 billion, resulting in a trade deficit of $3.557 billion with respect to the trade of goods exported and imported.

Trade deficit during the corresponding period of the last fiscal year i.e. July 2017, had stood at $2.823 billion and has grown by 26% over the year.

The balance on trade in services, on the other hand, has grown by merely 4% over the year as trade deficit for services was recorded at $498 million compared to a deficit of $479 million last year in July 2017.

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