Pakistan’s July Current Account Deficit clocks in at USD 579 Million

August 20, 2019 (MLN): Pakistan’s current account deficit (CAD) for the first month of FY20 stood at only USD 579 Million, a decrease of over 72 percent compared to the same period of FY19.

According to data released by the State Bank of Pakistan, on a monthly Basis, the CAD decreased by 37 percent.

Total Balance of trade in Goods & Services for July 2019 showed a deficit of USD 2.320 Billion, which still represented an improvement of over 42 percent compared to July 2018, while on a monthly basis, the improvement was 6.26 percent.

Balance of trade in Goods, showed a deficit of USD 1.847 Billion compared to USD 3.485 Billion from FY19, which showed an improvement in Pakistan's position by around 47 percent. On a monthly basis, the trade deficit improved by just under 16 percent.

Exports of Goods during the month stood at USD 2.233 Billion, which is 10 percent higher than the corresponding period from last year, while it’s an increase of 24.06 percent compared to June 2019.

Imports of Goods during the month of July decreased by over 25 percent compared to the previous year while showing an increase of 2.08 percent compared to June 2019. Imports during the month amounted to USD 4.080 Billion

Balance of trade in services for July showed a deficit of USD 473 Million, an improvement by 8.51 percent compared to July 2018, however, on a monthly basis the deficit increased by 70.14 percent.

With the primary income also showing a negative balance of USD 614 Million, the Balance on Goods, Services and Primary Income showed a deficit of USD 2.934 Billion.

However, improved remittances of USD 2.039 billion helped bolster the Secondary Income Balance to USD 2.355 Billion, which resulted in the total Current Account deficit being curtailed to USD 579 Million.

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