Pakistan’s current account posts deficit of $162 million in July

Pakistan’s current account deficit decreased to $162 million in July 2024, down by 78% YoY,  compared to the $741 million deficit recorded in the same month last year. 

According to data released by the State Bank of Pakistan (SBP) on Monday, Pakistan’s total exports of goods and services rose by 11% year-on-year in July 2024, reaching $3.013 billion, while imports increased by over 12% to $5.6 billion. Worker remittances also saw a 48% increase, totaling $2.995 billion.

On a monthly basis, the deficit decreased by 48% in July 2024 compared to a revised deficit of $313 million in June 2024. Exports dipped slightly by 2% from $3.081 billion in June, while imports decreased by 1.3% from $5.675 billion during the same period.

The current account balance remains a critical indicator for Pakistan’s economy, which is heavily reliant on imports. A widening deficit could exert further pressure on the exchange rate and deplete official foreign exchange reserves.