ISLAMABAD (APP): Pakistan’s Current Account shortfall narrows to $1.3 billion in first two months (Jul-Aug) of the year 2019-20 as compared to $2.85 billion in same period a year ago, showing a decline of 55%, State Bank of Pakistan reported on Thursday.
The details show that Current Account Balance without official transfers shrank to $1.4 billion in the corresponding period against $3.06 billion in same period of last year, showing a decline of 53%.
Balance of trade in goods also plunged by 40.4% from $5.98 billion in July-August 2018-19 to $3.56 billion in July-August this year, however balance of trade in services increased by 29.7% to $1.042 billion compared to $803 million.
Workers’ remittances in July-August 2019-20 witnessed a decline of to $3.73 billion in two months against $4.071 billion in same period last year. As a percentage of gross domestic product (GDP), the current account deficit narrowed to 2.8% in the first two months of 2019-20 as opposed to 5.5% in the same period of last year. Pakistan exported goods worth of $4.14 billion in July-August this year compared to exports valuing $4.084 billion in the comparable period of last year, reflecting a year-on-year increase of 1.42%.
The value of imported goods in the corresponding period was recorded at $7.7 billion, down 23.44% from $10.1 billion over corresponding period of last year.