KARACHI: The current account deficit has sharply declined by 54.66 percent during first two months of current fiscal year owing to significant decline in import bill during the period under review.
According to Balance of Payment (BoP) details issued by the State Bank of Pakistan (SBP) on Thursday, the current account deficit narrowed to $1.292 billion during July – August 2019 as compared with deficit of $2.85 billion in the same period of the last fiscal year.
During the period under review the deficit in trade in goods and service shrank to $4.604 billion as compared with $6.782 billion in the comparative period of the last year.
The exports of goods were at $4.142 billion in July – August 2019/2020 as compared with $4.084 billion in the same period of the last year. On the other hand the import bill significantly declined to $7.704 billion as compared with $10.063 billion in the same period of the last year.
The inflows of workers’ remittances failed to impact balance of payment. The inflows of remittances declined to $3.73 billion in first two months of current fiscal year as compared with $4.071 billion in the same months of the last fiscal year.