Karachi: The current account deficit of Pakistan shrank by 44.6% in July, clocking in at $1.21 billion, the State Bank of Pakistan reported on Wednesday.
According to the monthly report published by the Central Bank on the balance of payments, on a Month-on-Month basis, the difference between imports and exports shrank by 44.6% during the first month of the fiscal year 2023 and fell to $1.21 billion from $2.187 billion recorded in June of FY22.
In its statement, the SBP attributed this fall in the current account deficit to a sharp decline in energy imports and continued moderation in other imports.
1/2 The current account deficit shrank to $1.2bn in Jul from $2.2bn in Jun, largely reflecting a sharp decline in energy imports & a continued moderation in other imports. Visit #EasyData https://t.co/kiWKKJLduD pic.twitter.com/Kt3Ev5BjMt
— SBP (@StateBank_Pak) August 23, 2022
It also resulted due to wide-ranging measures taken in recent months to moderate growth and contain imports, including tight monetary policy, fiscal consolidation and some temporary administrative measures.
According to the report, exports of goods in July amounted to $2.295 billion. Compared to $3.315 billion, it is a 30% fall in exports.
Similarly, imports also dropped by 23.4% to $5.385 billion in July FY23 from $7.033 billion in June.
Read: Pakistan’s exports, imports down in July: PBS
However, on a Year-on-Year basis, the current account deficit amounted to $359 million in July because $851 million deficit was recorded during the same month last year.
Read: Pakistan’s Current Account Deficit crosses $17B mark during FY22
