Current Account Deficit posts a massive 73% fall

ISLAMABAD, Dec 19 (APP): Pakistan’s Current Account deficit narrowed to $1.8 billion in first five months (Jul-Nov) of the year 2019-20 as compared to deficit of $ 6.7 billion in same period, a year ago, showing a massive decline of 73 percent, State Bank of Pakistan reported on Thursday.

On year-on-year basis, the current account deficit also witnessed a huge fall of 72.64 percent to $319 million in November 2019 compared to $1.166 billion in same month of the previous year.

The details show that Current Account Balance without official transfers shrank to $2.06 billion in the corresponding period against $7.088 billion in same period of last year, showing a decline of 70.92 percent.

Balance of trade in goods also plunged by 40.14 percent from $13.368 billion in July-November 2018-19 to $8.002 billion in July-November this year.

Similarly, balance of trade in services also narrowed by 6.63 percent to $1.62 billion compared to $1.734 billion.

Workers’ remittances in July-November 2019-20 also increased to $9.299 billion in five months as compared to remittances of $9.281 billion recorded during same period of last year.

As a percentage of gross domestic product (GDP), the current account deficit narrowed by 1.6 percent in the first five months of 2019-20 as opposed to 5.3 percent in the same period of last year.

Pakistan exported goods and services worth of $12.474 billion in July-November this year compared to exports valuing $11.953 billion in the comparable period of last year, reflecting a year-on-year increase of 4.35 percent.

The value of imported goods in the corresponding period was recorded at $18.311 billion, down 21.13 percent from $23.218 billion over corresponding period of last year.

Dollar loses further against rupee