Pakistan’s current account deficit witnessed a sharp decline in July 2024, though it did not achieve a surplus.
According to the current account statistics released by the State Bank of Pakistan (SBP), the country faced a current account deficit of $162 million in the first month of the current financial year.
This figure represents a significant 78% decrease compared to the same period last year, when Pakistan recorded a current account deficit of $740 million in July 2023. The July 2024 deficit was also 48% lower than that of June 2024, when the deficit stood at $313 million.
While experts initially expected a smaller deficit, they said the current account deficit for July 2024 was higher than expected. This deficit has been attributed to a widening trade gap, which increased by 11% from June to July 2024, according to analysts.
Despite this increase, the overall reduction in the current account deficit is seen as a positive sign of improvement for Pakistan’s economy. However, experts caution that achieving a surplus will require further efforts to curb the trade deficit and improve export performance in the months ahead.
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