Current account deficit shrinks 73pc in nine months

KARACHI: The country’s current account deficit (CAD) decreased to $2.78 billion during the first nine months (three quarters) of FY20, a decline of 73pc when compared to the $10.284 billion CAD recorded in the corresponding period last year, according to data released by the State Bank of Pakistan on Thursday.

The current account deficit for March stood at $6 million, as against $823 million recorded in March last year, and $198 million recorded in February 2020.

Most of this was driven by the decline in imports, which fell 19.3pc year-on-year to $4.118 billion in March. Exports of goods also fell 10.8pc year-on-year to $2.037 billion in March.

Additionally, there was a 9.2pc rise in the inflow of workers’ remittances, which were recorded at $1.734 billion.

The trade deficit in total balance of goods and services was recorded at $2.368 billion in March, an improvement over the deficit recorded in February ($1.969 billion).

During the July-March FY20 period, the total deficit in goods and services balance stood at $17.1 billion, a decline of 30.8pc from the deficit of $24.7 billion recorded in the corresponding period of last year.

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Meiryum Ali
The author is a member of the staff and can be reached at [email protected]
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