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Current Account Deficit narrows 80pc in December

Current Account Deficit narrows 80pc in December

KARACHI: Pakistan’s Current Account Deficit narrowed to $367 million in December 2019 compared to $1.88 billion in same month of the previous year, showing a massive decline of 80 percent, State Bank of Pakistan reported.

On average, the current account deficit also registered a steep fall of 75 percent as it fell to $2.153 billion in first half (Jul-Dec) of the year 2019-20 as compared to deficit of $8.614 billion in same period, a year ago.

The details show that Current Account Balance without official transfers shrank to $2.434 billion in the corresponding period against $9.011 billion in same period of last year, showing a decline of 73 percent.

Balance of trade in goods also plunged by 49.39 percent from $16.2 billion in July-December 2018-19 to $9.82 billion in July-December this year. Similarly, balance of trade in services also narrowed by 17.

Workers’ remittances in July-December 2019-20 also increased to $11.4 billion in six months as compared to remittances of $11.03 billion recorded during same period of last year.

As a percentage of gross domestic product (GDP), the current account deficit narrowed by 1.5 percent in the first six months of 2019-20 as opposed to 5.8 percent in the same period of last year.

Pakistan exported goods and services worth of $15.13 billion in July-December this year compared to exports valuing $14.44 billion in the comparable period of last year, reflecting a year-on-year increase of 4.75 percent.

The value of imported goods in the corresponding period was recorded at $22.21 billion, down 26 percent from $28.1 billion over corresponding period of last year.