Pakistan’s current account deficit (CAD) fell to $0.7 billion in August, compared to $1.2bn in the previous month, the State Bank of Pakistan (SBP) said late on Wednesday night. This equates to a decline of 41.67 per cent month-on-month.

For the first two months of the current fiscal year, the current account deficit narrowed by $0.5bn to $1.9bn compared to the corresponding period in FY22, the central bank tweeted. This was primarily due to exports increasing by $0.5bn and imports declining by $0.2bn, it added.

SBP data showed the balance of trade in goods and services also declined by 0.54pc month-on-month to $3.98bn.

During August, imports of goods stood at $5.75bn, compared to $5.35bn in the preceding month. On the other hand, exports increased significantly to $2.81bn, jumping 23.38pc from $2.28bn in July.

Workers’ remittances clocked in at $2.72bn compared to $2.52bn in the previous month.

Pakistan posted a massive current account deficit of $17.3bn in the previous fiscal year, or a monthly average of $1.44bn.

The central bank expects CAD to lower to $10bn this year, according to a Mettis Global report.

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

UNGA speech
25 Sep, 2022

UNGA speech

CRISES test a nation’s resilience but also provide opportunities to rise and move forward. Prime Minister Shehbaz...
Dar’s return
Updated 25 Sep, 2022

Dar’s return

Dar will now be expected by his party to conjure up fiscal space for the govt to start spending ahead of the next elections.
Iran hijab protests
25 Sep, 2022

Iran hijab protests

FOR over a week now, Iran has been witnessing considerable tumult after a young woman died earlier this month in the...
Post-flood economy
Updated 24 Sep, 2022

Post-flood economy

WITH a third of the country — especially Sindh and Balochistan — under water, over 33m people displaced, and...
Panadol shortage
24 Sep, 2022

Panadol shortage

FROM headaches to fever to bodily pain — paracetamol is used ubiquitously in Pakistan as the go-to remedy for most...
Star-struck cops
24 Sep, 2022

Star-struck cops

IN this age of selfies and social media, it is easy to get carried away in the presence of famous people, even if ...