Pakistan’s Current Account deficit decreases by 75 percent in FY20

January 17, 2020 (MLN): Pakistan’s current account deficit for the first six months of Fiscal Year 2020 stood at USD 2.153 Billion compared to USD 8.614 billion from the corresponding period of last year, showing an improvement of USD 6.461 Billion or 75 percent.

During the month of December 2019, Pakistan posted a deficit of USD 367 million compared to a deficit of 364 million in November, showing a marginal increase. However, compared to December 2018, the deficit improved by USD 1.514 billion or 80.49 percent, data publised by the State Bank of Pakistan showed.

On quarterly basis the deficit improved by USD 3.666 billion or 84.72%, clocking in at USD 661 million in Q2 of FY20 compared to USD 4.287 billion in Q2 of FY19.

The trade deficit in Goods improved by 39.40 percent to 9.818 Billion in the first 6 months of FY20 as exports improved by 4.46 percent to USD 12.391 while imports decreased by 20.86%.

Trade balance in services, while still negative, also improved by 17.51 percent courtesy of a 4.69 percent reduction in imports while the exports increased by 6.12 percent.

Worker remittances in the first half of FY20 improved by 3.32 percent to USD 11.395 billion from USD 11.029 billion in the corresponding period of FY19.

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