Pakistan’s current account deficit clocks in at $809mn in July, highest since October 2022
- Total imports stand at $5.03bn against $6.07bn in the same period of previous year
After reporting a surplus for four successive months, Pakistan’s current account posted a deficit of $809 million in July, the highest since October 2022, showed data released by the State Bank of Pakistan (SBP) on Friday.
The deficit was lower when compared with $1.26 billion in July 2022, but is in stark contrast to the figure in June 2023 when the current account posted a surplus of $500 million.
As per central bank data, the country’s exports (goods and services) decreased to $2.654 billion in July 2023 against $2.743 billion in July 2022.
On the other hand, total imports stood at $5.03 billion in July 2023 against $6.07 billion in the same period last year.
Last month, Pakistan’s current account had posted a surplus for the fourth successive month.
The current account is a key figure for cash-strapped Pakistan that relies heavily on imports to run its economy. A widening deficit puts pressure on the exchange rate, and drains official foreign exchange reserves that stood at a little over $8 billion, according to the latest data.
Comments
Comments are closed for this article.