Finance

Current Account Deficit shrinks to $1.2 bn in July

Karachi, August 24, 2022: The current account deficit shrank to $1.2bn in July from $2.2bn in June, largely reflecting a sharp decline in energy imports & a continued moderation in other imports, a data released by State Bank of Pakistan (SBP) said on Wednesday.

“The narrower deficit is the result of wide-ranging measures taken in recent months to moderate growth and contain imports, including tight monetary policy, fiscal consolidation and some temporary administrative measures”, the SBP said on its twitter handle.

According to the data, the exports of goods rose from US$ 2.235 billion in July 2021 to $2.295 billion rose to $2.9 billion in July this year. The imports on the other hand increased from $5.371 billion to $5.385 billion in the month under review. The overall trade deficit also shrank to $3.090 billion compared to the deficit of $3.136 billion in July 2021.

Similarly, the trade deficit in services also shrank to $260 million in July compared to the deficit of $287 million in same month of previous year.

Deficit of primary income rose to $403 million in July 2022 compared to $289 million in same month of the previous year.

The combined deficit of goods, services, and primary income edged up to $3.753 billion in the corresponding month while during same month of last year, the deficit was recorded at $3.712 billion.

Workers’ remittances decreased to $2.524 billion against $2.736 billion in July 2022.

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