Pakistan’s current account deficit has come down by a big margin as the government follows tough measures in line with the IMF agreement.
According to the latest statistics from State Bank of Pakistan, the current account deficit of the country has shown a massive decline from $2.13 billion in July last year to $579 million in July 2019 depicting a year-on-year decrease of 72.81%. The current account deficit constituted 2.5% of the Gross Domestic Product (GDP) during last month, compared to a massive 8.3% from the same period in the last financial year. in July 2018.
Pakistan’s exports in goods and services showed a year-on-year increase of 8.84% while the imported goods and services had decreased by 14.07%. This re-balance caused the overall current account deficit between imports and exports to narrow down. The data shows that the Balance of trade in goods had plunged from $3.485 billion in July last year to $1.847 billion in last month. The Balance of trade in services was also down from $517 million to $473 million during the same period.
Last year has seen Pakistan implementing tough economic measures to fulfill the requirements as set by International Monetary Fund (IMF). Pakistan witnessed a spike in electricity and fuel prices and the dollar rate also sky-rocketed.
In another news, the Adviser to Prime Minister on Commerce, Textile, Industry & Production and Investment Mr. Abdul Razak Dawood, told a news outlet that Pakistan will soon come out of the current account deficit. The adviser mentioned that the country would hopefully come out of this trap by the end of the current fiscal year.
News Via Brecorder