KARACHI: Pakistan’s current account deficit narrowed by 31.71 percent in 2018/2019 due to reduction in trade deficit and improved foreign remittances.

The current account deficit contracted to $13.58 billion in 2018/2019 as compared with $19.87 billion in the preceding fiscal year, State Bank of Pakistan (SBP) said on Wednesday.

Economists believed that ease in trade deficit was main reason behind narrowed current account deficit. The trade deficit was reduced by15.33 percent in 2018/2019 to $31.82 billion as compared with $37.58 billion in the preceding fiscal year.

The import bill of the country has been reduced by 9.6 percent to $54.79 billion, which was at $60.79 billion in the preceding fiscal year.

The inflows of foreign remittances also helped in reduction of current account deficit.

The foreign remittances improved by 10 percent to $21.84 billion in fiscal year 2018/2019 as compared with $9.913 billion in the preceding fiscal year.