ISLAMABAD: Pakistan’s current account deficit (CAD) shrank to $1.2 billion in July from $2.2bn in June, largely reflecting a sharp decline in energy imports and a continued moderation in other imports, according to data released by State Bank of Pakistan (SBP) on Wednesday.
“The narrower deficit is the result of wide-ranging measures taken in recent months to moderate growth and contain imports, including tight monetary policy, fiscal consolidation and some temporary administrative measures”, the SBP said on its twitter handle.
According to the data, exports rose from $2.235bn in July 2021 to $2.295bn in July this year while imports increased from $5.371bn to $5.385bn in the month under review. The overall trade deficit also shrank to $3.090bn compared to the deficit of $3.136bn in July 2021.
Similarly, trade deficit in services also shrank to $260 million in July compared to the deficit of $287m in same month of previous year.
The trade deficit decreased by 9pc year-on-year, according to the Mettis Global report.
The deficit of primary income rose to $403m in July 2022 compared to $289m in same month of the previous year.
The combined deficit of goods, services, and primary income edged up to $3.753bn in July 2022 while during same month of last year, the deficit was recorded at $3.712bn.
Meanwhile, workers’ remittances decreased to $2.524bn against $2.736bn in July 202.
