The State Bank of Pakistan (SBP) released figures on Monday that showed Pakistan’s current account deficit for July 2024 was $162 million, a significant 78% decrease from the deficit of $741 million in the same month of the fiscal year prior.
In a note, the brokerage company Topline Securities stated that the trade imbalance was greater than anticipated, amounting to $2.4 billion as reported by the SBP in July 2024 as opposed to $1.97 billion by the Pakistan Bureau of Statistics (PBS).
It also stated, “Typically, SBP deficit numbers are lower than PBS numbers.”
The nation exported $3.013 billion worth of goods and services in July 2024, an 11% increase over $2.706 billion in the same month the previous year.
According to SBP data, imports were $5.6 billion in July 2024, an increase of more than 12% from the previous year.
Remittances from workers totaled $2.995 billion, a 48% rise from the year before.
Pakistan’s current account deficit has decreased as a result of low economic growth, rising inflation, and increased exports. The goal of the policymakers to reduce the current account deficit has also been helped by a high interest rate and certain import restrictions.
As per the SBP statistics, Pakistan’s current account decreased by 48% on a monthly basis in July 2024 as opposed to a revised deficit of $313 million in June 2024.
Pakistan’s imports decreased by 1.3% from $5.675 billion in June 2024 to $3.081 billion in June 2024, while the country’s exports of goods and services decreased by 2%.
For cash-strapped Pakistan, which mostly depends on imports to operate its economy, the current account is an important statistic. The currency rate is pressed and official foreign exchange reserves are depleted by a growing deficit.
