Karachi, February 21, 2019: Pakistan’s current account deficit declined by 17 percent to $8.4 billion during the first seven months of current fiscal year (7MFY19) as compared to $10.12 billion recorded during the same period of last fiscal year, State Bank of Pakistan (SBP) data shows.
The deficit has improved from 5.4 percent of GDP to 4.9 percent mainly due to the measures taken by the government to restrict imports and enhance exports from the country following last year’s $18.98 billion current account deficit.
Despite growth in the exports from the country’s goods trade deficit during the July-January FY19 increased by 0.14 percent to $17.6 billion compared to $17.6 billion in same period of last fiscal year.
Pakistan is currently facing a balance of payment crisis and taking measures to curb the imports of luxury goods to reduce current account deficit in addition to seeking financial assistance from friendly countries including Saudi Arabia, UAE and China. The financial help has dragged the country out of financial crisis.
The government is also negotiating with International monetary Fund IMF for upto $6 billion bailout program which is likely from the next fiscal year.
So far, Saudi Arabia has placed $3 billion with Pakistan for a period of one year to support the balance of payment. While UAE has also pledged a loan of $3 billion for one year and one billion has already transferred into Pakistan’s account.