The State Bank of Pakistan on Tuesday said that Pakistan’s current account deficit (CAD) contracted by a massive 73 per cent in the first month of this fiscal year.
The CAD shrank to $579 million in July (the first month of this fiscal year), as compared to $2.13 billion in the same period of last year. The whopping 72.81 percent reduction came on the back of a 10 percent jump in exports and a decline in imports, and followed the government’s $6 billion bailout agreement with the International Monetary Fund earlier this year.
According to the SBP data, exports climbed 10 percent to $2.233 billion in July, from $2.012 billion in the same period last year. Imports, meanwhile, dropped to $4.08 billion from $5.497 billion.
As a result, the balance of trade in goods narrowed to $1.847 billion, compared to a deficit of $3.485 billion. The balance of trade in services, on the other hand, went down 8.5 percent to $473 million.