Current account deficit plunges 99pc to $6mn in March

• The deficit declined by 73.1 percent as it fell to $2.768 billion in first nine months (Jul-March) of the year 2019-20 as compared to deficit of $10.284 billion in the same period of last year.
• Balance of trade in goods also plunged by 31 percent from $14.68 billion in July-March 2018-19 to $21.261 billion in July-January this year.
• Pakistan exported goods and services worth of $22.5 billion in July-March this year as compared to exports valuing $22.6 billion in the comparable period of last year.

ISLAMABAD: The lockdown currently imposed around the world has affected the balance of payment in the country as it is reflected in the March, 2020 data in which the current account deficit shrank by 99 percent to $06 million as compared to $823 million in same month of the previous year.

On average, the deficit declined by 73.1 percent as it fell to $2.768 billion in first nine months (Jul-March) of the year 2019-20 as compared to deficit of $10.284 billion in the same period of last year, State Bank of Pakistan (SBP) Thursday reported.

The details show that current account balance without official transfers shrank to $3.15 billion in the corresponding period against $10.8 billion in the same period of last year, showing a decline of 71 percent.

Balance of trade in goods also plunged by 31 percent from $14.68 billion in July-March 2018-19 to $21.261 billion in July-January this year.

Similarly, balance of trade in services also narrowed by 30 percent to $2.44 billion as compared to $3.488 billion.

Workers' remittances in July-March 2019-20 also increased to $16.99 billion in nine months as compared to remittances of $16.032 billion recorded during same period of last year.

As a percentage of gross domestic product (GDP), the current account deficit narrowed by 1.3 percent in the first nine months of 2019-20 as opposed to 4.7 percent in the same period of last year.

Pakistan exported goods and services worth of $22.5 billion in July-March this year as compared to exports valuing $22.6 billion in the comparable period of last year.

The value of imported goods in the corresponding period was recorded at $32.9 billion, down 16.28 percent from $39.3 billion over corresponding period of last year.